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Industry Monitor Automotive ComponentsApril 2010 Cygnus Business Consulting & Research Pvt. Ltd. 2010

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INDUSTRY AT A GLANCE

MARKETINGAutoline Industries' US subsidiary receives prestigious 2009 supplier ofthe year award, IndiaTVS Motor unveils auto-clutch bike, IndiaHonda bike unit to set up second plant, IndiaTatas open laser scouring facility in PCMC, IndiaOPERATIONS

Fehrer picks up 40% stake in Harita JV, India'Share of Chinese auto-parts in Indian market to reach US$6.85bn', IndiaAmtek Auto group firm to set up 2m tonne steel plant, IndiaBorgWarner sets up Rs300m facility near Chennai, IndiaAmtek Auto up 4% after Swiss Finance buys stake, IndiaBosch settles wage talks at Bangalore plant, IndiaFord Details PowerShift Dual-Clutch Auto Transmission, IndiaM&M lets Renault take majority stake in JV, IndiaTRW Automotive in pact with Xi'an Dong Fang Group to set up new plant ,IndiaHyundai swings against counterfeiters in Delhi, IndiaHero Motors joins hands with Germany's ZF-Lemforder, IndiaTata may source auto parts from Bangladesh, IndiaShriram Pistons to invest Rs7.00bn in new plant, IndiaUK engineering majors eye collaborations with companies from India, UKSakthi Automotive sells German biz to MAT Holdings, Germany

ZF & Hero Group to set up JV company, Germany

QPAC - Indian Auto Components Industry - October-December 2009 Cygnus Business Consulting & Research Pvt. Ltd. 20101

Net Sales and Growth

5456

5860

6264

66OND08OND090%

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2%4%

6%8%

10%12%Net Sales (LHS)

Growth (RHS)EBIDTA and OPM

20

3040

5060

OND08OND09020

406080100

120EBIDTA (LHS)OPM (RHS)

Net Profit and NPM

(3)0

36912

OND08OND09-50

5101520

Net Profit (LHS)NPM (RHS)

Source: BSE India; Cygnus Research

INDUSTRY ANALYSISThe India is now becoming a major hub for auto components to globalautomobile makers, The majorIndian auto component companies are expected to further provide a push

to this opportunity by takingpart in the forthcoming automobile, auto-component parts and technologyparallel show Auto MobilInternational (AMI) and AMITEC to open in the month of April in Leipzig,Germany. In the last year,the three largest European auto-component makers had set up facilities inPune belt. The Italy-basedleader in brake discs for automotive vehicles, Brembo, and Germany-based manufacturer of clamps,

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plastic tubing systems and connectors for auto and non-auto industry,Norma group, set up their facilitiesat Chakan and Talegaon respectively in 2009. Recently, another Germanfirm, ZF group, inaugurated its100% Indian subsidiary at Chakan. Domestic auto component makers arealso likely to face competitionfrom foreign suppliers making a beeline for the country following increasein penetration by originalequipment manufacturers (OEMs).During OND 09, the auto-component industry top line sales have beenincreased by 9% to Rs63263.26mdue to the good performance of the automobile sector in the second halfof 2009. The industriesoperational performance has been increased by 54% to Rs5559.02magainst the previous year of sameperiod. The Industry had shown good financial performance with Profitafter tax at Rs1065.32m, in the

pervious year of same period as the base was very low with Rs216.01m.Note: Following companies are considered foranalysis: Amtek auto, Apollo tyres, Bharat forges, Ceat ltd,Exide industries, JK tyres, MRF ltd, Rico auto, SundaramClayton, Sona Koyo steering System, Sundram Fasteners.