India's largest manufacturer of precision bearing cages has come out with an IPO. Find out more about the business.
What Harsha Engineers does?
Harsha Engineers is India's largest bearing cage manufacturer in the organised space and one of the largest in the world.
Bearings are one of the most common and important components in various industries such as automobiles, aviation, railways, electronics, and more. Bearing cages are part of a bearing. Since the cost of manufacturing bearing cages is low when compared to bearings (but there's a requirement for separate machines), bearing manufacturers outsource this and that's where Harsha Engineers comes in.
Harsha Engineers manufactures a wide range of bearing cages, such as in brass, steel or polyamide, and from 20mm to 2,000 mm in diameter. The company has two segments: engineering business which contributes 94 per cent in revenue, and solar EPC business which contributes 6 per cent. Harsha Engineers also manufactures brushes and specialty components. It has four manufacturing facilities in total - two in India, one in China, and one in Romania, all of which are strategically located near coasts for easy export. Talking of exports, the company generates 63 per cent of its revenue from exports, with the European region being the major contributor with 60 per cent of total exports revenue.
The international bearing cage market can be a boon for Harsha Engineers
The global bearing cage market is expected to grow at 6.5 per cent per annum from 2021 to 2029, on the back of an increase in the trend of outsourcing. 79 per cent of bearing cages are in-house manufactured and this is expected to change in the coming years. This can be a catalyst for the company's growth.
Also read Harsha Engineers IPO: How good is it? to learn how we evaluate the company on various metrics.
Disclaimer: The author may be an applicant in this initial public offering.