Amalgamations Group Business Report FY ended Mar. 2017
Recent Years
Financial Overview
-In recent years, 15% of the Company's total sales have been generated from exports.
Bimetal Bearings Ltd.
-Revenue for the fiscal year ended March 31, 2015 increased by 7.8% over the previous year to INR 1,629.4 million. The increase in revenue was caused by an increase in sales to OEMs and in the export of end products.
-Sales in the fiscal year ended March 31, 2014 decreased by 9.8% from INR 1,559.2 million the previous fiscal year to INR 1,405.7 million.
IP Rings Ltd.
-Sales for the fiscal year ended March 31, 2015 increased by 18.7% from INR 948.8 million to INR 1,126.2 million. IP Rings also had a loss before tax of INR 11.5 million in the fiscal year ended March 31, 2015, an improvement from the INR 36.2 million loss the previous fiscal year. Diminished demand in the automotive and commercial vehicle markets created low capacity utilization, which led to lower profitability.
-Sales in the fiscal year ended March 31, 2014 decreased by 0.3% from INR 951.8 million to INR 948.8 million. IP Rings Ltd's profits before tax rose from a INR 64.1 million loss in the previous year to a INR 36.2 million loss in the fiscal year ended March 31, 2014. By implementing a variety of cost cutting and productivity improving measures, specifically the installation of a dedicated power line for power savings, the company was able to reduce its losses over the previous year.
-Sales in the fiscal year ended March 31, 2013 increased by 4.3% from INR 912.6 million in the previous fiscal year to INR 951.8 million. Profits before tax dropped from a profit of INR 2.9 million to a loss of INR 64.2 million for the fiscal year ended March 31, 2013. The decrease in profits resulted from sluggish growth in new business from the rings and orbital cold formed divisions and a significant increase in power costs.
Restructuring
Divestiture of MAHLE IPL Ltd.
-At the end of 2013, the Company divested all of its shares in MAHLE IPL Ltd. to its joint venture partner, MAHLE GmbH. The Company had owned approximately 40% of MAHLE IPL Ltd. prior to the divestiture. MAHLE IPL Ltd. developed and manufactured pistons for both gasoline and diesel engines.
Technical Alliances
-The Group has technical alliances with the following companies:
Bimetal Bearings Ltd.
-Bimetal Bearings shares an intellectual property and technology transfer agreement with Daido Metal Co., Ltd., Japan for the production of a range of high performance and Euro III compliant lead-free materials, manufacturing process up-gradation and introduction of contemporary overplay plating process.
IP Rings Ltd.
-IP Rings Ltd. has a technical tie-up with Austria-based Miba for carbon friction lining of synchrocones and other synchronizer components.
-IP Rings Ltd. has been provided technical assistance for PVD rings from the JV partner Nippon Piston Ring Company.
R&D Activities (FY ended Mar. 31, 2015)
IP Rings Ltd.
-In the fiscal year ended March 31, 2015, IP Rings Ltd. invested a total of INR 2.9 million in research and development, which was approximately 0.26% of its total sales.
-The following are specific R&D activities that IP Rings focused on in the fiscal year ended March 31, 2015:
- Development of piston rings for engines operating on ethanol fuel.
- Development of Physical Vapor Deposition (PVD) rings for diesel passenger vehicles.
- Development of Electronic Differential Lock (EDL) rings and pin type cam rings for modern vehicles.
- Development of split type differential cases for an export order.
-The following are specific R&D activities that IP Rings plans to focus on in the future:
- Development of PVD coated rings for utility vehicles.
- Development of a new low friction and ring welding prevention coating.
- Development of hypoid gears through an orbital cold forming process.
- Improvements on heat treatment process to minimize distortions.
Bimetal Bearings Ltd.
-In the fiscal year ended March 31, 2015, Bimetal Bearings had a total research and development expenditure of INR 9.2 million.
-Bimetal Bearings Ltd's recent research and development activities have centered around the development of high strength aluminum and bronze alloys for engine bearing applications. The company is also developing lead free electroplating to comply to standards dictating the reduction or elimination of lead in components.
R&D Activities (FY ended Mar. 31, 2014)
IP Rings Ltd.
-In the fiscal year ended March 31, 2014, IP Rings had a research and development expenditure of INR 5.6 million, which was 0.59% of the Company's total sales.
-The following are specific R&D activities that IP Rings focused on in the fiscal year ended March 31, 2014:
- Development of Physical Vapor Deposition (PVD) coated rings with larger diameters and higher depths for heavy duty commercial vehicles
- Development of full face moly coated rings for truck applications
- Development of in-house warm forgings for differential gears
- Development of high precision bevel gears and cam rings for electronic versions of differential cases in passenger cars
-The following are specific R&D activities that IP Rings will focus on in the future:
- Development of hypoid gears through an orbital cold forming process
- Improvements on heat treatment process to minimize distortions
R&D Activities (FY ended Mar. 31, 2013)
IP Rings Ltd.
-In the fiscal year ended March 31, 2013, IP Rings spent INR 4.5 million, or 0.47% of its total sales, on R&D activities.
-The following are specific R&D activities that IP Rings focused on in the fiscal year ended March 31, 2013:
- Continuation of research on Physical Vapor Deposition (PVD) coated rings to meet Euro IV and Euro V standards for passenger and commercial vehicles
- Development of flashless hot forged blanks for further raw material savings
-The following are R&D activities that IP Rings will focus on in the future:
- Further research on PVD coatings to meet Euro V and Euro VI standards
- Further improvements in productivity, process flow and heat treatment of orbital cold formed components
- Development and testing of differential case assemblies incorporating the company's gears
R&D Activities (FY ended Mar. 31, 2012)
IP Rings Ltd.
-In the fiscal year ended March 31, 2012, IP Rings spent INR 6.2 million on R&D activities (fiscal year ended March 31, 2011: INR 5.6 million), equivalent to 0.68% of the company's total sales.
-Smaller diameter rings are being developed along with alternate processes.
Investment in India
Amalgamations Valeo Clutch Pvt. Ltd.
-Amalgamations Valeo Clutch Pvt. Ltd. opened a new clutch manufacturing plant at Oragadam, Chennai, India on February 19, 2014. The new plant was designed to centralize the company's clutch manufacturing activities.
India Pistons Ltd.
-In 2012, India Pistons Ltd. expanded its piston rings capacity at Sengundaram to complement capacities at Sembiam. Also, the company commissioned a new piston manufacturing facility at Maraimalai Nagar as part of the company's piston expansion program.
-In 2011, India Pistons Ltd. acquired a cylinder liner facility and renamed it IPL Engine Components Private Ltd. The new facility is capable of manufacturing 1.2 million cylinder liners per year.
-In 2009, India Pistons Ltd. completed construction of a new manufacturing plant in Rudrapur for the production of cylinder liners and the assembly of pistons.