Endurance Technologies Ltd intends to spend a capex of ₹350-400 crore in India and €40-45 million in Europe in FY24 as the auto parts manufacturer looks to ramp up capacity to meet the growing order flows.

The proposed capex  in India will be similar to the FY23 capex of ₹391 crore, while the capex in Europe will be higher than last year’s €29.9 million.

The bulk of this fiscal’s capex in India (about 75 per cent) will be in growth projects and die-casting, while the remaining will be in R&D, quality/efficiency enhancement and routine replacements. The capex in Europe will be made in expanding capacity to meet new business requirements.

The company is expandingAnti-lock Braking Systemcapacity to 6 lakh units from 4 lakh units. Forging capacity is being ramped up to 6 lakh units from 2.8 lakh units. While it will establish a new assembly line for scooter front forks, it will also build casting and machining capability centres for electric vehicles and ICE orders. A new SMT line for the battery management system is expected to commence operations at Waluj, Aurangabad next month.

Indian EV orders

The company has bagged Indian EV orders worth ₹600 crore in the past two years from companies such as Bajaj, Ampere, Mahindra, Bounce, Hero Electric, Ather and Okinawa. Further, ₹329-crore EV business was won by its subsidiary Maxwell. In FY23, the company won orders for 15 EV programmes from 11 customers.

“While economies and automotive markets globally have seen turmoil in the form of the pandemic, inflation, geopolitics and supply chain issues, we at Endurance have benefited from our resilient structure and have moved from strength to strength in establishing ourselves as a strong and reliable partner for multiple marquee OEMs,” Satrajit Ray, Director & Group CFO of Endurance, told businessline.

Endurance Technologies is also in discussion with various customers for RFQs worth ₹2,600 crore.

In Europe, it bagged orders worth €84 million in FY23, of which €41 million were for EVs and €27 million for hybrid vehicles. Overall, the company secured orders worth €220 million from Europe in the last 4 years, of which €71 million were for EVs and €112 million for hybrid applications.

Since Europe is a large market for e-bikes, the company believes that its recent initiatives to set up a 2W Centre of Excellence in Europe (though acquisitions of Adler, Grimeca, Frenotecnica and Newfen in the last 3-4 years) will help access this market in a more significant way.

While the company doesn’t give any growth guidance, it is confident of growing ahead of the industry. The company posted a consolidated total income of ₹8849.5 crore for FY23, up 17 per cent from ₹7590.2 crore in FY22. Its PAT (after minority interest) was ₹480 crore, up from ₹461 crore.