Just adding to the notes
-They mentioned willingness to grow in other location for diversifying their revenues (no dependence on one plant)l & current land is enough for next 3-4 years of growth).
-Competitors mentioned include:- Sundram Fasteners, Hitech Gears, Sona Blw.
-Really respect the work both Sona Blw and Sansera are doing in the industry. When I asked them which competitors do they respect.
-Plan to do 60 crore capex per annum going forward (what they stated in the concall).
-Some of the employees were there in the company since 1990s.
-The plant built for ZF housed 7 products which exclusively RACL is doing. 100% supplies. The difference between Japanese and German work culture is:- that Japanese will come to the plant and sit together to rectify mistakes. In one of the past instances a batch of products was rejected due to finger print and also have been rejected due to wrong boxes!
German customers- straight away reject and deduct the amount.
-Observation from visiting other set ups:- plant & machines were noiseless and machinery was mainly from Europe and China.
-Trying to get into differential gears. Lost out on one contract to a large domestic competitor.
-Plans to get into industrial gears. Already supplying:- stated one example how entire Paris can go through a black out as their gears are used in electric circuit of the customer they have supplied to.
-Biggest challenge they face is that of manpower. Training the employees and making them understand the Quality culture is a challenge. Japanese monitor the plant using some software (don’t remember the exact name). They keep checking Quality of each and every product. As all products have a QR code on them.
Promoters strategy was extremely clear when Gursharan sir said this:-
We are a company that is purely focused on niche segments. This is what gives us the gross profit margins. We are not and never will be a mass market company.
Disclaimer:- strictly not a recommendation to buy or sell. Just sharing what I learned on top of notes shared by @First_Principles