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The eBearing News
January 5, 2005
Reliance Takes Larger Stake
in NRB Bearings
copyright © 2005 eBearing Inc.
Reliance Growth Fund (a Reliance Mutual Fund entity) announced it has now acquired more than
5% of the outstanding shares of NRB Bearings Ltd. (India).
The formal notification, required when an investor controls more than 5% of a company's
outstanding shares, was made to the National Stock Exchange, following Reliance's
purchase of a final block of 6,304 shares.
All of the Reliance share purchases were made on the open market at market prices.
Reliance now owns 487,431 shares of NRB Bearings Ltd.
NRB, in turn, is a key investor and shareholder in fellow Indian bearing manufacturer SNL.
Sales and earnings for NRB have been strong. Fiscal year 2004 sales came in 20% above
2003, while net profit jumped 57%.
• article: NRB reports strong fiscal 2004 results
NRB, now with five facilities in India, was founded in 1965 as a joint venture with French needle
bearing manufacturer Nadella. Nadella was later acquired by Torrington, and Torrington by Timken
in early 2003 -- making NRB now a publicly-traded Indian subsidiary of Timken.
NRB manufactures needle roller, thrust and cylindrical roller bearings; the majority of its
output -- 85% -- goes to automobile and light truck manufacturers. Most of that production
is exported to European customers such as Renault, but the company also sells to India's growing
automaker population. NRB is also seeking type approval by GM, Volvo and others.
In the Indian market, NRB sales include key positions in textile machinery bearings and rail bearings.
Reliance Growth Fund, established in 1995, is one of the most highly-respected aggressive growth
funds. Reliance Growth returned over 30% per year over the past
five years, while the Bombay Stock Exchange 100 Index averaged only 8%. In December, Reliance Growth
announced 2004's dividend payout will be 25%.
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- by Bruce A. Carr
from individual research,
tips and commercial sources.
Unauthorized reproduction is prohibited.
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eBearing.com ... for everything that moves™
Entire contents Copyright 1999-2008, eBearing Inc. All rights reserved.
eBearing.com and "... for everything that moves" are registered
trademarks of eBearing Inc.
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eBearing.com ... for everything that moves™
Entire contents Copyright © 1999-2008, eBearing Inc. All rights reserved.
eBearing.com and "... for everything that moves" are registered trademarks of eBearing Inc.
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