NRB Bearings Ltd, a leading supplier of bearings to the automotive sector, plans to invest ₹200 crore over the next 2-3 years in capacity expansion, R&D and future mobility areas.
The BSE-listed company said it is gearing up for the ‘next normal’ as new opportunities and industry dynamics get redefined.
The company has accelerated the expansion of R&D operations for two of its R&D centres spanning over 36,000 sq. feet. It plans to set up a global innovation centre for future electric mobility at the Dubai International Finance Centre. The company will undertake capacity expansion in Thailand subsidiary by additional capex investment of ₹35 crore over the next two financial years.
“Going ahead, the company will not only focus on products which are EV-agnostic, but also expand to newer areas of business development, including products for steering systems, hybrid and electrical transmission, e-chassis applications and other applications which are for hybrid or electric vehicles. The company is continuously investing in the futuristic products as well as on the future platforms which they are co-developing,” Harshbeena Zaveri, Managing Director of NRB, said in the company’s investor document.
NRB’s facilities have the capacity to expand product range in line with its position in the friction solutions and precision component space for the world's most advanced e-mobility applications. The company’s strategy for the future is to have the overseas business largely catering to the EV sector.
The company is re-allocating its production lines to future mobility solutions as with ICE two wheelers being phased out, NRB will be suppliers to the high performance and mass electric two-wheeler players who are future-focused. NRB is exclusive supplier to Ola’s two-wheeler factory and Ola has tapped into NRB for all the customised needle bearings it requires.
While its current exports comprise hybrid products and e-drive passenger cars and light, medium and heavy trucks, it will move towards electric powertrains, from the steering, the transmission and e-axle to the braking system.
At present it supplies to 45 countries and consolidated overseas business grew 88 per cent at ₹133 crore during the first half of this fiscal. Total revenue during H1 stood at ₹433 crore, up 76 per cent. PAT was at ₹36 crore against a loss of ₹4 crore.
“With strong R&D, the company has developed newer products with the adoption of BS-VI norms and e-mobility trends. Our strong export order book is another advantage, and we expect substantial and continuing growth in exports with the restructuring of our subsidiaries,” said Zaveri.
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