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ABC Bearings


ABC Bearings operates in the automobile industry and manufactures ball and roller bearings.

It has a technical collaboration with NSK Japan in manufacturing its products.

The company has reported stable revenues and operating profits over the last five years – reporting 42cr of operating profits on revenues of 200cr in the last financial year.  It employed minimal net debt in its operations.

The business is subject to intense competition from Chinese/CIS suppliers, who ‘dump’ products in the domestic market below even material cost, as well as the unorganised sector supplying bearings of questionable quality.

The business is also exposed to rising steel costs and is generally dependent on the fortunes of the auto and capital goods industry, whose sales largely depend on the interest rate cycle (impacting ease of loan financing for purchases) as well as oil prices (affecting autos).

Moreover the company is a net importer and is therefore exposed to a weakening INR.
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