Background
A preferred supplier to global off-highway vehicle market.
Uniparts is present both in the OEM and aftermarket segments in the off-highway industry with strong global operating model and wide customer base comprising of over 125 customers from across the globe.
Our products are shipped to over 25 countries worldwide
Basics
- 5 production facilities + 2 Warehousing facilities
- Off-highway market size: 200bn$
- 2 core products: 3PL[1] (17% global mkt share) & Precision machine parts[2] : $1bn (6% global mkt share)
- Adjacent products ($10bn): Power takeoff, Hydraulic cylinders, Fabricated assemblies.
- key Competition
- 3PL over 70HP
- CBM Italy
- GKN Walterscheid Germany
- <70HP
- Delica in Japan
- PMP
- General Grind (USA)
- China One
- 3PL over 70HP
[[Q3FY24]]
-
North America agricultural equipment market demand continues to be soft and in the short term, especially for smaller equipment
- However, inventory destocking appears to have bottomed out.
-
Europe: stable to marginally down
-
Domestic: soft
-
New orders
- 1st shipment to 2nd largest retail store in USA (Lowes? Home depot?); has 800 stores[3]
- 1st shipment to world’s largest construction equipment OEM (CAT?) started (9-10mn$ plan or 80cr)
- Pilot batches of 3PL for UTV’s started (opp of 20-25mn$ ie 160-200cr opp. over 4-5 years)
Lead times for new products
- Aftermarket: 4-6m
- OEM (say new
new model): upto 2yrs
- Outsourcing of existing :12months
- Gross Margins
- 64.5%
- With freight: 60-61% (~3.5-4.5%)
- Growth next year:
- Mid teens in revenue and margins around 20-21%.
- Decrease in large ag business expected due to slowdown in US agriculture
lifecycle of 8-10years ↩︎
lifecycle of 5-7years ↩︎
This is second (800stores) after Tractor Supply which has about 2200 stores (10mn$ account or 80 revenue). They expect this to scale up accordingly to 4mn$ rev or 30cr in 2-3 years) ↩︎
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