Bharat Gears Ltd. Business Report FY ended Mar. 2013-2015

Recent Years

Financial Overview

FY ended March 31, 2015
-Net sales in FY ended March 2015 decreased by 1.2% to INR 4,148.9 million year-on-year. This is due to the sharp fall in the Company's primary market comprising tractors in India. The reduction in domestic sales was largely offset by a growth in exports.

FY ended March 31, 2014
-The Company's net sales in the FY ended March 31, 2014 increased by 6.9% from the previous year to INR 4,198.7 million. The increase in sales was driven primarily by higher demand in domestic tractors and exports, while being offset by weaker sales in the commercial and passenger vehicle markets.

FY ended March 31, 2013

-In the FY ended March 31, 2013, the Company's net sales were INR 3,926.2 million, a decline of 8.8% from the previous fiscal year. The decrease in sales was due to a drop in demand for vehicles in India.

Business Strategy

-The Company has embarked on a long term strategy in the last few years that focused on growing exports. The share of exports in net sales has been increasing steadily from 13.6% recorded in FY ended March 2011 to more than 30% in the fiscal year that ended in March 2015.

R&D Activities

FY ended March 31, 2014
-The Company introduced and implemented an Outer Diameter (OD) Grinding process with multi gauge capabilities that cut cycle times by approximately 90%.

FY ended March 31, 2013
-The Company is developing a new process to manufacture shafts and planetary gears which will improve the compressive strength of the components.

Product Development

FY ended March 31, 2013
-The Company developed two types of straight bevel gears which contain differential locks to be used in axles.

Capital Expenditure

(in million INR)
FY ended in Mar. 31, 2015 FY ended in Mar. 31, 2014 FY ended in Mar. 31, 2013
Total 52.8 409.1 265.1

Investment Within India

FY ended March 31, 2014
-First stage construction at the Company's new facility in Satara, Lonand was completed in the FY ending March 31, 2014. Commercial production at the plant began on March 31, 2014. The Lonand (Satara) plant is initially producing gears for transmissions.

FY ended March 31, 2013

-In May 2012, the Company started construction on its third plant in Lonand, Maharashtra. The plant is planned to be inaugurated in May 2013, and will shortly begin the process of testing and commissioning various machines. This will then be followed by trial production. Commercial production at the new plant is scheduled to begin some time in the FY ending March 31, 2014. The plant will initially focus on manufacturing transmission gears.

-The Company ordered a Klingelnberg CNC gear cutting machine and a Gleason shaving cutter sharpening machine to increase its gear production capacity.