Galaxy Bearings

Have studied another microcap Bearing roller company
and as per My understanding
the value chain is First Cage (Harsha Engineering) is manufactured,
Then the rolling element [Needle and Ball Rollers (SKP Bearings)] are been put into the Those Cages
then the cages is packed with Seals Made (Sealmatic India and Menon Bearings)
The same is jammed Between Inner and Outter Rings (Rolex Rings)

As per my conversation with Roller manufacturer CEO, This precision engineering tools are very Important as the same if causes error can result into even life damage and so OEM generally prefer not to switch the Suppliers unless there is something very wrong with the supplier.
Majority of the revenue comes from the existing client’s repeat order stating the Customer Stickiness

To onboard new clients in this Space every System and Quality Audit is required and this process can take anywhere between 6 months to 2 Years

So I guess the Moat of the company is That OEM once landed as client will remain with them for Years and in some cases Decades
And Switching time in industry is high which can be Advantage as well as Disadvantage
Disadvantage as in they wont be able to land the new client Smoothly and Fastly
Advantage – Customer won’t take so big of buffer time. so instead of Changing the supplier they’ll continue with current manufacturer

Disclaimer – Invested In SKP Bearings