Another tepid results as expected. Will keep on reporting higher losses as they onboard more employees and as AUM will come with lag… Employees as of Sep – 70 (March24 – 51)

In a recent interview MD mentioned launch of PMS biz this quarter. Another takeaway was employees of Shriram Finance are undergoing certification and training (for group distribution). Link below

Interview with Mr. Kartik Jain, MD & CEO, Shriram Asset Management Company

Have added back 25% qnty which was sold earlier as the financialization theme is hitting all time highs be it UTI/Nippon/HDFC AMC, BSE/MCX, Nuvama/Anand Rathi Wealth Management and distributors…

CIE Automotive India Limited: A Comprehensive Overview

CIE Automotive India Limited, formerly known as Mahindra CIE Automotive Limited, is a subsidiary of CIE Automotive S.A., headquartered in Spain. The company operates as a full-service supplier of automotive components and sub-assemblies, managing high-value-added processes sustainably and efficiently. With a strong global presence, CIE Automotive is recognized for its technological expertise and established relationships with original equipment manufacturers (OEMs).

Business Operations and Structure

CIE Automotive India Limited is characterized by its multi-locational and multi-technology approach to manufacturing automotive components. The company operates manufacturing facilities and engineering capabilities in various countries, including India, Germany, Spain, Lithuania, Italy, and Mexico. This diverse operational footprint allows it to cater to a wide range of automotive segments.

Products and Segments

CIE India specializes in producing complex automotive parts that include:

• Crankshafts
• Stub axles
• Steering races
• Engine valve retainers
• Constant velocity joints
• Steering shafts
• Wheel hubs

The company operates across six primary business segments:

1. Forgings
2. Stamping
3. Casting (iron and aluminum)
4. Gears
5. Composite products
6. Magnetic products

These segments serve various automotive markets, including passenger vehicles (PVs), commercial vehicles (CVs), tractors, two-wheelers (2Ws), and off-highway vehicles.

Manufacturing Facilities

Following its acquisition of Aurangabad Electricals Limited in 2019, CIE India expanded its manufacturing capabilities to 31 facilities, with eight located in Europe. This extensive network supports its production of high-value components.

Key Customers

CIE India supplies major automotive OEMs and Tier 1 suppliers such as:

• Mahindra & Mahindra
• Maruti Suzuki India Limited
• Tata Motors
• Caterpillar
• John Deere

Current Utilisation Rates and Future Expansion Plans

Current Utilisation Rates

As of April 2022:

• Most businesses in India were operating near 100% capacity.
• The Gears division was specifically at full capacity.
• European facilities were running at 70-75% capacity.

Future Expansion Plans

CIE Automotive is investing heavily in expanding its capacity across various divisions in India:

• Investment Focus: Approximately ₹4 billion spent on capital expenditure in 2023.
• Gears Division: Plans for expansion in Rajkot and Pune.
• Aluminium Forging Development: Ongoing development to enhance capabilities.

The company remains open to mergers and acquisitions to further bolster its growth strategy.

Avenues for Future Revenue Growth

CIE Automotive India Limited has identified several key areas for potential revenue growth:

1. Capitalising on India’s Automotive Market Growth:

   • Increased income levels and low vehicle penetration rates are expected to drive demand.
   • Active investments in capacity expansion to meet this demand.

2. Leveraging Global Expertise:

   • Access to cutting-edge technologies through the parent company enhances competitiveness.

3. Strategic Focus on High-Growth Segments:

   • Development of electric vehicle components.
   • Investment in aluminium forging and composite materials technology.

4. Improving Operational Efficiency:

   • Continuous focus on productivity enhancements and cost optimization.

5. Exploring Inorganic Growth Opportunities:

   • Interest in mergers and acquisitions primarily focused on the Indian market.

Challenges and Risks

While the outlook for CIE Automotive India Limited appears positive, several challenges must be addressed:

• Competition: The automotive components industry is highly competitive.
• Economic Volatility: Global economic factors could impact growth.
• Technology Disruption: Rapid technological advancements necessitate continuous innovation.