The auto ancilary industry comes under consumer cyclical group. It’s a non- commodity type industry.

Industry Strengths

Strong and growing demand for automobiles in India as well as abroad.
Ease of finance availability to purchase vehicles.

Demand from replacement market for auto ancillaries which earns higher margins compared to original equipment manufacturing (OEM)

Industry Weakness

The auto ancillary sector depends on single sector where margins often gets squeezed in order to increase profits from Original Equipment Manufactures

The industry gets impacted from high interest rate as demand for vehicles turn sluggish.

Growth Drivers

Growing income of middle class and upper middle class work force in India.
Rapid urbanization and industrialization of cities in India.
Strong demand for automobiles in India and requirement of high quality components to build them.
Rise is domestic and global economic growth which spurs demand for transport equipment.

Germany-based Robert Bosch GmbH holds nearly 72% equity in the company. The company is a leading auto component maker and is headquartered in Bangalore.
The Company operates in the manufacturing and trading of automotive products.
The company has manufacturing facilities in Bangalore, Naganathapura near Bangalore, Nashik in Maharashtra, Jaipur in Rajasthan, and Goa.

Segments and Products

The Company has presence across
1.automotive technology,
2.industrial technology,
3.consumer goods and
4.energy and building technology.
Its segments include Automotive Products and others.

It manufactures and trades in products, such as automotive aftermarket products, starters and generators, diesel and gasoline fuel injection systems, industrial equipment, electrical power tools, security systems, packaging machines, and industrial and consumer energy products and solutions.

The Company also offers products, including injectors, nozzles and nozzle holders, and starter motors and generators, fuel injection equipment and components.