The shares of Auto Ancillary company, specializing in the manufacturing of automotive suspension systems, components, and shock absorbers are in focus upon signing the Technical assistance agreement with TracTive Suspension BV.
Price action
With a market capitalization of Rs. 6,891.32 crores on Monday, the shares of Gabriel India Limited were down upto 2.3 percent making a low of Rs. 469.85 per share compared to its previous closing price of Rs. 480.80 per share.
What Happened
Gabriel India Limited engaged in the manufacturing of automotive suspension systems, components, and shock absorbers has entered into a Technical Assistance Agreement with TracTive Suspension BV.
This agreement allows GIL to exclusively license to use of TracTive’s proprietary technology for manufacturing, OEM sales, OES sales, and aftermarket sales in India while ensuring the transfer of technical knowledge and assistance, the agreement also outlines mutual obligations regarding technical training and supply of components.
GIL will pay lump sum fees and royalties to TracTive and the agreement is expected to provide access to TracTive’s suspension adjustment technology and technical expertise, enabling it to enhance its automotive suspension products through application engineering and localized manufacturing.
It will also strengthen GIL’s market position by granting exclusive manufacturing and sales rights in India, fostering product innovation, and facilitating knowledge transfer through technical assistance and training programs.
About the Company
Gabriel India Limited is a leading manufacturer of automotive suspension systems, shock absorbers, and related components and it provides products for a wide range of vehicles, including passenger cars, commercial vehicles, and two-wheelers. It serves both domestic and international markets and is recognized for its expertise in developing advanced solutions for the automotive industry. Gabriel is generally estimated to hold around 30-40 percent of the market share in India for automotive suspension systems.
Vision 2025
The company aims to be among the top 5 shock absorber manufacturers in the world.
Prominent Marquee OEM and Customer Base
The key customers of Gabriel India Limited span across various segments. In the 2/3-wheelers segment, their clients include Atul Auto, Bajaj, Honda, Royal Enfield, Benelli, Mahindra, TVS, Suzuki, Yamaha, and more. For passenger cars, Gabriel India serves Honda, Tata, Maruti Suzuki, Toyota, and others. In the CV & Railway segment, their clients include Ashok Leyland, Force Motors, DAF, ISUZU, Daimler, and more.
Financials
The company’s total revenue rose by 25 percent from Rs. 819.28 crore to Rs. 1,026.03 crore in Q3FY24-25. Meanwhile, Net profit grew from Rs. 41.25 crore to Rs. 60.11 crore during the same period.
Written by Sridhar J
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