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1996 FIN – Kirloskar Lists Largest Fastener Manufacturers in Growing India Market

October 01
00:00 2009

1996 FIN – Kirloskar Lists Largest Fastener Manufacturers in Growing India Market

July 15, 1996 FIN – A report by Kirloskar Consultants Ltd. of Pune, India, listed eight fastener manufacturers which account for 70% of high tensile fastener production in India:

Sundram Fasteners Limited, Madras, India, part of the South India-based TVS Group. Sundram is the largest manufacturer of HT fasteners with 1993-94 production at about 14,110 tons.
Net sales increased about 19% for 1994-95 after adjusting for inflation and spurts in costs and mark-ups.
Three-quarters of its production is automotive.
Sundram was the first company in India to obtain ISO 9000 accreditation.
Sundram is a market leader in automotive fasteners and produces 4,500 varieties of fasteners. The company is beginning socket head cap screw production.
The company has an export alliance with Rudolf Kellerman of Germany and last year began manufacturing construction fasteners to export to Germany.
Sundram plans to expand export to OEMs in Europe and North America. Exports are expected to account for more than 10% of production this year.
In 1993-94, HT fasteners accounted for 71% of Sundram sales, but that dropped to 66% for 1995-96. Sundram products include iron and metal powder, radiator caps, precision-formed gears and other automotive components.

Precision Fasteners Limited, Thane, Maharashtra, is the leader in non-automotive, industrial fasteners. Sixty percent of Precision’s fasteners are used in textile machinery, power equipment, earth moving and cement machinery and transmission towers. Precision recently entered the automotive market.
U.S.-based SPS Technologies has a 22% equity in Precision and products are sold under SPS’ Unbrako brand name.
Sixty-five percent of Precision’s business in non-automotive.
Precision’s main plant at Thane, Bombay, has a 4,800-ton capacity and it has a 4,100-ton plant at Mahad, near Bombay. A 2,400-ton plant opened at Silvassa last year with a 2,000 ton second phase slated to open next year.
“The company has plans to substantially expand its Silvassa plant to become a global player with a total capacity of about 15,000 tons per annum,” according to Kirloskar.

GKW Limited, Bhandup, Bombay, Haora (West Bengal) was known as Guest Keen Williams and is now a Bangur Group company. GKW production includes stamping, steel (hot rolled bars), wheels and machine tools in addition to fasteners. About 37% of its business is automotive.
GKW has not announced any fastener expansion plans.

Lakshmi Precision Screws Limited, Rohtak, Haryana, is part of the Rohtak-based Jain Group. Products are sold under the LPS brand name.
Lakshimi recently expanded capacity from 5,000 to 7,000 TPA.
The company has a large dealer network in the replacement market and has made “a significant advance in the export market” to Europe and the U.S.

ISPL Industries Limited (Bajaj Group), Rajkot, Gujaret, has a wide products range including lamp making machines, billet casting plants, thermo couples, electric arc furnaces and HT fasteners, but nearly 80% is for automotive use.
Though fastener capacity is 2,200 TPA, ISPL produced only 847 tons in 1993-94 and could increase production quickly.

Indian Steel & Wire Products, Ltd., Purbi, Singhbhum, Bihar, manufactures steel wire, bolts, nuts, rivets and wire nails. Indian Steel has no announced expansion plans.

Simmonds Marshall Ltd., Pune Maharashtra, manufactures nylon insert self-locking nuts and a wide range of special nuts, including wheel nuts, slotted nuts and other HT precision fasteners. Nearly 80% of production is for automotive.
Simmonds Marshall has no announced expansion plans.

Sterling Tools, Faridahad, Haryana, made its first public offering in April 1995 in order to expand fastener manufacturing capacity from 3,200 to 7,000 TPA.
Sterling supplies 90% of its production to automotive OEMs including Maruti, Telco, Bajaj Auto, Hero Honda and Punjab Tractors. ©1996/2009 July 15, 1996 FIN – There will be a steady increase in demand for fasteners in India through 2003, according to a recent study from an Indian firm seeking a joint venture partner to manufacture fasteners.

India will need 2,338 tons of fasteners beyond its domestic production this year and “a steadily widening demand-supply gap” will result in a 47,727-ton shortage by the 2002-03 cycle, according to Kirloskar Consultants Ltd. of Pune, India.

There are more than 8,000 types of fasteners manufactured in India now, according to the report.
“In view of the good growth expected in the users sectors, particularly in the automotive sector, the domestic demand for high tensile fasteners will continue to expand at a rate between 10% and 15% per annum in the next seven years,” the Kirloskar report stated.

Hex head bolts represent about 50% of the total growth.
Though there is a domestic shortage, exports will grow from 5,270 tons in 1994-95 to 28,000 tons in 2002-2003.

Kirloskar said the “high tensile fastener industry is not highly technology intensive and, therefore, OEMs in such countries will source HT fasteners from developing countries.”
The report forecasts a reduction of HT fastener production in Europe due to the high cost of labor and “India and China will be major producers.”

T.N. Sun, president of Chun Zu Machinery Industry Co., Ltd. of Kaohsiung, Taiwan, described India to FIN as “a very big market.”
The population was estimated at 882,600,000 in 1992 with 30 more births per 1,000 women annually.
Sun said, “Therefore their domestic industry is growing fast. Companies are manufacturing for their own use” without needing an export market.

The report was prepared by Kirloskar for Roadmaster Steel Strips, Ltd., which Roadmaster joint managing director Ashok Goyal said is seeking to develop a 2,400-ton capacity high tensile fastener plant to supply automotive, power, machinery and railway fasteners for the Indian and export markets.
Roadmaster Steel is a division of the Roadmaster Group of companies. The Roadmaster Group is best known for manufacturing bicycles, components and accessories, dairy products including milk powder, baby foods and cold rolled steel strips.

Kirloskar said the shortages ended in 1994-95 due to a recession and because of a jump in production encouraged by the 1993-94 shortages.

Market prices for fasteners in India have been “decided by Precision Fasteners,” according to Kirloskar. Sundram has been following Precision’s pricing, but in the future, Sundram “wants to be the trend setter rather than being a follower.”

The report said it is difficult to take advantage of the economics of scale because “fasteners are required in small quantities of about 5,000 pieces.

There are not many new entrants expected in the fastener industry, according to reports filed with the Secretary of Industry, but several firms plan expansions.

Imported fasteners are gaining an advantage because of reproductions in duties in recent years, but labor costs in developed countries have risen. ©1996/2009 Fastener Industry News

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