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The eBearing News
January 25, 2006
ABC Bearings Plans to Double Production
copyright © 2005 eBearing Inc.
ABC Bearings (formerly Antifriction Bearings Corp., India) announced five-year investment plans that will
more than double its bearing production capacity.
The company's target markets in India -- heavy-duty truck and industrial -- are among the
fastest-growing in the world. ABC said it needs to pursue aggressive expansion just to maintain
its existing market share in such a fast-paced environment.
ABC's manufacturing facility in Bharuch currently is capacity constrained to 6.5 million
bearings per year, even though its as-built capacity was reportedly as high as 8 million. After the
new plant and equipment additions, capacity will then be approximately 12 million bearings per year.
At one time, ABC also had a manufacturing facility in Lonavala, which it was later forced to
divest to Tata Motors for operating cash.
In all, the Bharuch expansion is expected to cost up to 80 crore (USD ?????????????) by 2010.
Pradip Patel, ABC's Managing Director, said: "The expansion is aimed at maintaining market share in
the commercial vehicle segment, expand presence in industrial bearings, and increase exports."
ABC's bearing line does not currently target automakers or the two-wheel or three-wheel market segments,
and it has no plans to contest the entrenched, often brutal, and highly cost-driven competition there.
Mr. Patel said: "Most passenger car manufacturers have an established supply base for bearings; the
effort required to enter the market is not feasible."
While 65% of ABC sales are into the heavy truck market, approximately 25% of the product line targets
tractors and similar farm implements. The remaining 10% moves into heavy industrial equipment.
With the planned expansion, ABC is also adding new CV joint product lines, but the company
did not comment if it was another heavy-duty market addition or a move into light-duty.
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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
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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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