Records a considerable Net Sales rise with figures touching Rs.160.14 crore , thus posting a 15% rise over the previous year.
Setco Automotive Ltd., India's largest manufacturer of premium clutches for medium and heavy commercial vehicles (MHCV), has announced its annual results for the year 2008-09. The company sales in the aftermarket segment recording an exponential growth of 60% over the previous year has helped the company’s new Uttarakhand unit to post impressive results in the 1st year of its operations.
Inspite of the downturn in the Indian and Global economy and in particular the steep fall in the automotive industry, Setco Automotive in India recorded a considerable Net Sales rise with figures touching Rs.160.14 crore , thus posting a 15% rise over the previous year.
Commenting on the Company's performance, Mr. Harish Sheth, CMD, Setco Automotive Ltd. said, “The company strategy which was to concentrate on the aftermarket and exports has paid rich dividends, especially given these trying times. Despite the nearly 28% dip in Original Equipment sales, there has been a 15% growth in overall sales.” Due to the major drop in the automotive sector’s CV sales, the company’s OE sales have been severely affected. The overall fall in exports and the global downturn have also severely affected this market segment. But despite this, the company has managed to post an impressive growth in net sales, aided by a robust growth in the aftermarket segment.
“Despite the downturn in the economy and in particular the automotive industry, and also the resultant higher steel prices, the company has yet been able to maintain its profitability thanks to its Uttarakhand operations. The company commenced operations in its manufacturing unit in Uttarakhand on April 1st 2008. This facility caters to a large portion of Setco’s requirement for the Indian aftermarket. The various incentives offered by the government will be contributing considerably to its bottom line over the period of the next 10 years.” added Mr. Sheth.
Setco has in fact used the recession as an opportunity to strengthen its bearings and build its workforce from within. As an investment for future growth, a lot of the focus over the last year has been on imparting multi skill training and cross pollination thus improving efficiency and increasing productivity. And bucking the retrenchment trend, the company has instead launched a recruitment drive.
About Setco Automotive Ltd
Setco, incorporated in May 1982, is a diversified engineering products company, listed on the BSE Sensex. Setco is the largest manufacturer of Premium Quality Lipe clutches for heavy and medium commercial vehicles in India. The company employs more than 700 people globally. It is a Tier I supplier of clutches to all major Indian commercial vehicle manufacturers with a customer base inclusive of prominent names such as Tata Motors, Ashok Leyland and Eicher Motors, among others. Setco has strategic global footprint with 4 manufacturing facilities globally, 2 in India, and 1 each in UK and USA, with its corporate base in Mumbai, India. Setco’s R&D base is also in the UK. Setco additionally manufacture 3 other parts, Precision Components, Pressings, Hydraulics, and is a OEM supplier to other major OEMs globally as well.
For more information click on: www.setcoauto.com
