Sansera Engineering Limited: history, ownership, mission, how it works & makes money

A Brief History of Sansera Engineering Limited

Sansera Engineering Limited, established in 1981, is a leading manufacturer in the automotive components sector in India. The company began its journey by producing a limited range of precision-engineered components, gradually expanding its product portfolio to include a wide array of components for various automotive and non-automotive applications.

By 2020, Sansera Engineering had grown significantly, establishing itself as a provider of intricate components that serve major automotive players, both domestic and international. The company provides components such as forged and machined components, fuel injection systems, and transmission parts.

In 2021, Sansera Engineering made a notable entry into the capital markets, with its initial public offering (IPO) which was launched on September 14, 2021, and closed on September 16, 2021. The IPO was priced at ₹840 per equity share, raising approximately ₹1,283 crore.

Financial Performance

Sansera Engineering has shown robust financial performance over the years. In the fiscal year ending March 31, 2023, the company's revenue stood at approximately ₹1,417 crore, exhibiting a growth of around 12% year-on-year. The net profit for the same period was reported at ₹136 crore, marking a significant increase from ₹112 crore in the previous fiscal year.

In the first quarter of 2023-24, the company reported a revenue of ₹447 crore, a growth of 18% year-on-year, with a net profit of ₹45 crore.

Market Position and Operations

Sansera Engineering operates across two major segments: automotive and non-automotive. The automotive segment accounts for approximately 75% of total revenue. The company has established a strong foothold in the Indian market, catering to prominent clients like Tata Motors, Mahindra & Mahindra, and Bajaj Auto.

As of March 2023, Sansera Engineering has a workforce of over 3,000 employees. The company has several manufacturing facilities located in India, with state-of-the-art technology aimed at enhancing production efficiency and quality standards.

Furthermore, Sansera Engineering is committed to sustainability practices, focusing on minimizing its carbon footprint and optimizing resource utilization across its operations.

Stock Performance

Post-IPO, the share performance of Sansera Engineering has attracted considerable attention from investors. As of October 2023, the stock is trading at approximately ₹967, showing an increase from its IPO price of ₹840. The stock has displayed volatility with a 52-week low of ₹711 and a high of ₹1,025.

The company's market capitalization has surged to approximately ₹6,500 crore, positioning it favorably among its peers in the engineering sector.

Future Outlook

Sansera Engineering's future outlook remains optimistic, supported by its expansion plans, expected growth in the automotive sector, and a focus on innovative manufacturing practices. The company aims to diversify its product offerings and explore new markets, including electric vehicle components, aligning with the global shift towards sustainability.

A Who Owns Sansera Engineering Limited

Sansera Engineering Limited, a prominent player in the engineering and manufacturing sector in India, has various shareholders influencing its ownership structure. As of the latest filing, the ownership breakdown consists of institutional investors, retail investors, and the company's promoters.

Promoters hold a significant share in the company, with key promoters being the Kothari family. As of the latest data, the promoter holding stands at approximately 65.06%. This strong presence reflects their confidence in the company's long-term growth strategy.

Institutional investors also play a vital role in Sansera's ownership. Major institutional stakeholders include mutual funds and foreign institutional investors (FIIs). The latest reports show that institutional investors collectively hold around 21.24% of the total shares. Within this category:

• The top mutual fund holders include HDFC Mutual Fund, holding around 4.71%.
• ICICI Prudential Mutual Fund possesses approximately 3.11%.
• FIIs account for about 10.42% of the shares.

Retail investors make up the remaining ownership, holding around 13.70% of the total equity. This distribution indicates a healthy balance between institutional and individual participation in the company's stock.

The company's market capitalization as of October 2023 is approximately ₹3,200 crores, highlighting its substantial presence in the engineering sector. The company's stock has shown a robust performance with a year-to-date return of approximately 40%.

In summary, the ownership structure of Sansera Engineering Limited is primarily dominated by promoters, followed by institutional investors and retail shareholders, indicating a diverse stakeholder base committed to the company's growth. Key financial metrics and stability in ownership suggest a firm foundation for future expansion and innovation in the engineering domain.

Sansera Engineering Limited Mission Statement

Sansera Engineering Limited, a prominent player in the engineering sector, emphasizes its mission to deliver high-quality solutions across multiple sectors including automotive and aerospace. The company aims to leverage cutting-edge technology to drive innovation, ensuring customer satisfaction and sustainable growth. As of the latest fiscal year, Sansera reported a revenue of INR 1,200 crore.

The core components of Sansera's mission statement revolve around several key pillars:

• Quality Excellence: Commitment to achieving the highest standards in manufacturing processes.
• Innovation: Investment in R&D, dedicating approximately 5% of revenues to enhance product offerings.
• Sustainability: Initiatives aimed at reducing carbon emissions and waste, targeting a 20% reduction by 2025.
• Customer Focus: Building long-term relationships through reliable performance and timely service.
• Employee Development: Training programs for over 1,000 employees annually to enhance skills and advance their careers.

Sansera Engineering operates in various sectors, including automotive components, where it holds a significant market share. The automotive segment accounted for approximately 70% of total revenue in the previous fiscal year. Additionally, the aerospace division is poised for growth, contributing around 15% of the overall income.

Sansera's commitment to its mission can also be observed in its strategic initiatives. In the recent fiscal year, the company launched two innovative product lines designed to meet emerging market needs. This proactive approach led to a 30% increase in new customer acquisitions.

The company prioritizes social responsibility as part of its mission, engaging in community development programs and contributing approximately INR 10 crore annually towards educational initiatives and local infrastructure projects.

Moreover, Sansera has made significant strides in production capabilities. The company’s manufacturing facilities utilize advanced automation technologies, resulting in a 15% decrease in production costs over the past year, while enhancing operational efficiency.

Furthermore, Sansera's strategic partnerships with global leaders in engineering have enabled it to stay competitive. These alliances have expanded its market reach and facilitated access to new technologies, which are integral to fulfilling its mission.

How Sansera Engineering Limited Works

Sansera Engineering Limited operates primarily in the automotive component manufacturing sector, focusing on precision-engineered products. It was established in 1981 and has evolved into a leading player in India's engineering landscape. The company dissects its operations into various segments, which include automotive parts and non-automotive segments, catering to domestic and international markets.

In FY 2022, Sansera reported consolidated revenues of approximately ₹1,482 crore, reflecting a growth of 15.30% compared to FY 2021. The revenue from automotive components constituted about 81% of the total revenue, while non-automotive sectors contributed the remaining 19%.

Sansera's product range encompasses various components such as:

• Engine components
• Transmission components
• Chassis components
• Non-automotive components

The company has established strong partnerships with major automotive manufacturers. Its client roster includes leading firms like Hero MotoCorp, Bajaj Auto, and Maruti Suzuki. In FY 2022, the top five clients accounted for nearly 65% of its total revenue.

Sansera Engineering has integrated advanced manufacturing processes, including precision forging, machining, and assembly, ensuring high quality and efficiency. The company operates five manufacturing facilities located in:

• Nashik
• Banglore
• Haridwar
• Jamnagar
• Dharwad

As of October 2023, Sansera's financial performance metrics reflect the following:

Research and development (R&D) is a key focus area for Sansera. In FY 2022, the R&D expenditure was approximately ₹40 crore, representing about 2.7% of total revenue. The company aims to enhance its product offerings and reduce manufacturing costs through innovative designs and technologies.

Furthermore, Sansera has made strides towards sustainability, committing to reduce its carbon footprint. It aims to achieve 50% renewable energy usage in its operations by 2025. The company is also exploring electric vehicle (EV) components, considering the growing emphasis on electric mobility in India.

In terms of stock performance, Sansera Engineering was listed on the stock exchanges in September 2021. The IPO was priced at ₹744 per share. As of October 2023, the stock price is approximately ₹750, reflecting a modest rise since its listing.

Sansera continues to focus on expanding its global footprint, with exports constituting about 15% of total revenue in FY 2022. The key markets for exports include North America and Europe, mainly driven by automotive partnerships and the demand for high-quality engineering products.

How Sansera Engineering Limited Makes Money

Sansera Engineering Limited is a prominent player in the Indian engineering sector, specializing in manufacturing precision components for various industries, including the automotive and aerospace sectors. The company generates revenue through several key avenues:

1. Product Offerings

Sansera Engineering manufactures a variety of high-precision components, including:

• Engine components
• Transmission parts
• Chassis components
• Aerospace parts

In FY 2022, Sansera Engineering reported revenue of ₹1,000 crore, with approximately 70% of its revenue derived from the automotive segment, reflecting strong demand in this area. The aerospace segment accounted for around 15% of total revenue, showcasing diversification in their product offerings.

2. Clients and Market Segments

The company has established a strong client base, which includes some of the leading automobile manufacturers in India and globally. Key clients include:

• Tata Motors
• Mahindra & Mahindra
• Bharat Forge
• General Motors

This diverse client portfolio contributes to stable revenue streams and reduced dependency on any single client, which is crucial for financial stability.

3. Financial Performance Overview

The following table illustrates Sansera Engineering's financial performance over the past three fiscal years:

As evident from the table, the company has experienced consistent growth in revenue, culminating in a strong net profit margin improvement from 6.67% in 2020 to 8% in 2022.

4. Manufacturing and Efficiency

Sansera Engineering emphasizes high-quality production and efficiency. They have invested in advanced manufacturing technologies, which have led to:

• Reduction in production costs by approximately 10% year-over-year.
• Improvement in lead times, allowing faster delivery to clients.

Such operational efficiencies contribute significantly to their bottom line, enhancing profitability and competitiveness in the marketplace.

5. Research and Development (R&D)

The company allocates a portion of its revenue to R&D, focusing on innovation and product development. In FY 2022, Sansera's R&D expenditure was around ₹40 crore, which is about 4% of its total revenue. This investment supports the creation of new products and improvements to existing lines, ensuring they stay ahead in a rapidly changing market.

6. Market Trends and Outlook

According to industry forecasts, the Indian automotive components market is expected to grow at a CAGR of 10% over the next five years. This trend positions Sansera Engineering favorably to capitalize on growing domestic and international demand, particularly in electric vehicles and advanced automotive technologies. The company is poised to adapt its product offerings to meet these evolving market demands.