Performance

Stating that his company had to tackle headwinds in 2015 generated by the market environment, Avinash Gandhi, chairman of FAG Bearings expressed that the company’s revenue grew by 6.4 per cent. He declared that the Profit Before Tax (PBT) for the year 2015 was higher than the previous year at 26 per cent at Rs.2938 million. PBT in 2014 was Rs.2323 million. The negative performance of the off-highway segment was apparent. Other sectors and exports, said Gandhi, performed moderately well in comparison. Exports revenue dipped to 4.7 per cent. Testimony to having attained increased operational efficiency and enhanced manufacturing, Gandhi declared a double digit growth at both its plants at Maneja and Savli respectively. Looking at improving manufacturing localisation drastically, from a mere 1.5 per cent at present, the company shared plans to invest Rs. 80 crore over the next few years in an effort to achieve a Compounded Annual Growth Rate (CAGR) of 15 per cent. involve fine tuning of processes and system competencies. With an eye on the changing legislations and emission levels pertaining to automobiles, FAG Bearings India continues to operate under the Group strategy to invest in the next generation of technology solutions. The company, apart from working closely with its clients to provide tailor-made OE solutions, is said to be also working towards offering quality aftermarket solutions. As far as the company’s participation in the agricultural sector is concerned, the X-life bearings continue to be the key focus area. These bearings are claimed to offer higher base dynamic load ratings compared to conventional products, resulting in a longer service life. Said to contribute towards improving the overall cost effectiveness of the application under the total cost of ownership principle, FAG tapered roller bearings, radial spherical roller bearings, four point contact bearings, double row angular contact ball bearings, TORB toroidal roller bearings and tapered roller bearings are some of the X-life products offered. In railways, the company has a 17 per cent market share. It supplies wheel set bearings and drivetrain bearings. Aiming to perform twice as much in the aftermarket, FAG Bearings India is looking at offering some innovative solutions in the area of clutch, engine, transmission and chassis. Continuing to focus on bearings and related components for cross sector application across automotive, agricultural, rail and the aftermarket, FAG Bearings India, there is no doubt, has a reason to be optimistic about growth.