Simmonds ready for next growth phase
Fasteners maker aims high with interesting projects.
Navroze S Marshall, managing director, told Autocar Professional that a second project in the pipeline involved making a range of fastener products for a domestic Tier 1 supplier. Simmonds makes 325 million nuts at its Pune plant which translates into 65 percent capacity utilisation. Over the last year, it has invested Rs 2 crore in new machinery imported from Taiwan, Malaysia and Europe. The figure earmarked for this year is Rs 1.5 crore.
The company has targeted a turnover of Rs 21-24 crore this year. While the domestic market accounts for 80 percent of business, Marshall is keen on increasing the share of exports. "I expect exports to grow 120 percent this year and by a similar (if not greater) margin next year. We have two or three very big projects in the pipeline that are now starting to bear fruit," he said.
Simmonds also sees good business potential in the two-wheeler segment where it supplies to Hero Honda, Bajaj Auto, TVS Motor and Honda Motorcycle & Scooter India. Similarly, in cars, it has not made a dent in companies like General Motors India, Skoda, Ford, Toyota or Honda (for cars) as their fasteners are part of their semi-knocked down kits and have not been indigenised yet. The big break could come from the Rs 1-lakh Tata car given that it has been a supplier for 45 years.
In exports, Europe takes up a share of nearly 65 percent. The UK is Simmonds' biggest market followed by France and Germany. The company supplies its fasteners to large warehouses and stockists who do just-in-time feeds directly into the OE's production lines.
The other key global markets are South Africa and the US. Simmonds has tied up with two companies in the US, one of which is one of the biggest manufacturers of nuts in the world. "It is at a very infant stage and we have just received a few trial orders. Once it goes through, we hope to see a surge," Marshall says. Though the price is very competitive, the volumes could more than make up.
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