Analyst Meet / AGM - Analyst Meet
Plans to cross a turnover of Rs 3000 crore in next couple of years
The company held its Investor meet on 28th Sep'15 and was addressed by Prasan Firodia MD
Key Highlights
The company is engaged in manufacturing of LCV, utility vehicles, tractors, and other products for auto industry like engines, engine components, axle etc. CV, tractors and auto engines and component business accounts for about 60%, 10% and 30% of its total business activity respectively of the company. The company caters to Mercedes Benz and will cater to BMW for their engine and components requirements including axles.
Management expects CV cycle to pick up by Q4 of FY'16 and then to remain strong for next couple of years.
Company plans to ramp up its existing brands like Tempo, Metador and the Traveller. Going forward within its traditional basket of offerings, the company will continue to focus on niche segments like ambulances, school buses and intercity transport vehicles. The company is also seeing good traction with share a taxi operators in travelers segment.
The company also plans to produce modern day vehicles equipped with features like inside cameras, vehicles tracking systems especially for school buses, high end software and hard ware etc. The company wants to tap the increase in mobility business in next couple of years.
Almost all the vehicles produced by the company are now BS 4 compliant.
Amidst industry slowdown, the tractor segment of the company has grown although on a small base and in single digit. The company is able to gain market share from various existing players. Management expects the sector to pick up by Q4 FY'16 onwards.
Force Motors is the only company worldwide which manufactures engines for both Mercedes and BMW. The company so far has supplied more than 50000 engines to Mercedes of all class and range.
The company has completed the manufacturing facility at new plant in Chennai which is dedicated for BMW. The facility has capability of manufacturing around 20000 engine sets of all the Series of BMW cars and can be increased to around 50000 going forward. The facility will kick start its commercial production from Q3 FY'16 onwards.
For FY'16, the planned capex is about Rs 400 crore of which Rs 200 crore is already spent on Chennai plant for BMW. The capex will be predominately on product development, new generation smart vehicles, increase in tooling business and OEM capacity addition.
The company is a debt free company with cash of more than Rs 300 crore as on June'15.
The company plans to cross a turnover of Rs 3000 crore in next couple of years.
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