Stock Insight: Clutch Set for a Long Drive

As India's growth story unfolds, the reflections are visible on the vrooming growth of the automobile industry. Improvement in road infrastructure, regulation on load carrying limits, increasing tractor demand, growing disposable income of consumers, and popular financing schemes augur better times for the country's automobile industry. Add to this, the global opportunities that outsourcing is bringing to India. If automobile industry in the country is on a roll, can auto ancillary industry be far behind! With clients like Tata Motors, Ashok Leyland, Maruti Udyog, Mahindra and Mahindra, Bajaj Auto, TAFE, Toyota, BEML and Escorts; Clutch Auto is on course to ride the auto part industry's growth juggernaut. Being India's largest clutch manufacturer and exporter, the company holds nearly 60 per cent market share in the commercial vehicle segment and dominates the tractor space with a market share of 80 per cent , supplying to all manufacturers in India. After taking a dip in 2002- 2003, production for commercial vehicles has been rising continuously and as a result demand for clutches has intensified too. This augurs well for a company like Clutch Auto. With over 500 different size and types of clutches and 16 patented products in its stable, the company enjoys a competitive edge over othe

This article was originally published on August 01, 2006.