Home Interviews The industry is expected to grow at 8-10 per cent CAGR in the next 5 years

The industry is expected to grow at 8-10 per cent CAGR in the next 5 years

The industry is expected  to grow at 8-10 per cent  CAGR in the next 5 years

Rohit Saboo, CEO and President, National Engineering Industries Ltd

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How do you visualise the bearing industry in India?

The Indian bearing industry has a vast product range and the industry caters to two- and three-wheelers, cars, trucks, tractors, electric motors, railway wagons, coaches and locomotives, steel mills, heavy engineering plants, bulldozers, shovels, tillers and thermal power plants. The total size of bearing industry in India is around Rs 9,000 crore.

What are the expected growth drivers and CAGR?

The industry is expected to grow at the rate of CAGR 8-10 per cent for the next 5 years, with the expected growth drivers at large being the overall economy growth (GDP growth) in the coming years. This includes growth in the automotive segment as well as the industrial segment. Also, India is fast becoming a significant global player for R&D.

Could you give us a comparison between imported and indigenous automotive bearings?

There are two kinds of imports coming to India, one is the low cost/cheaper bearings coming from China which is certainly of inferior quality though it is not well accepted with auto OEMs but these bearings are well accepted in aftermarkets because of cheaper rates. Chinese bearings imports are growing at the rate of CAGR 30 per cent. In terms of indigenous products, imports are coming to India for sizes that are not manufactured here. These bearings are pegged at a higher cost but have a good acceptance as a result of good quality.

What is your take on the market dynamics in aut bearings?

The market dynamics depends on factors such as overall economic conditions and volatility of steel prices etc. As far as the automotive industry and industrial growth are concerned, NBC Bearings is well equipped to handle any of these situations.

Your comments on vision 2020 of NBC.

The company targets a turnover of Rs 5,000 crore by 2020 and we are extensively and tirelessly working towards this goal. To achieve this target the company has to grow organically at a growth rate of CAGR 20 per cent per year and the balance growth will come through mergers and acquisitions.

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