So we’ve all been reading about how India is swiftly gaining ground on China in terms of additional capacities being shifted here across sectors due to rising wage costs in China and lower technological competence compared to India. There’s a company that I came across and it isn’t really a hidden name.
Honda Siel Power is into the manufacturing of various equipments in the power and agri sector. In the Power sector, it makes portable generators which are exported to the rest of the world . These generators range from 1kvA to 7KvA in power.
In the Agri segement, the company primarily caters to the farm equipment needs of rural India -right from tillers to brush cutters.
now, the interesting story here is that after years of importing stuff from Japan and selling it here(basically a trading firm), Honda Siel has now slowly moved to making these products locally and selling them both domestically and abroad.
After localizing the generator portfolio, the company is now developing tillers, brush cutters and engines locally.
As highlighted in the attached doc as well as the ET Now article, the company has made rapid strides over the years to localize production in order to optimize costs and gain a strong foothold in the domestic agri business specifically
This could be an interesting story as we are getting a proven brand that wants to make in India and penetrate the rural market with innovative products that could increase yields/hectare
The major problem i’ve faced thus far is in trying to gage the scalability of the market of the products that Siel makes-be it the brushcutters or the tillers.
I’ve attached a doc which contains all the main pointers from the 2007 AR to the 2016 AR.
Disc: Not investedARNotes (1).docx (9.1 KB)