- 17 Nov 2022
- ICICIdirect Research
Timken plans to set up new manufacturing facility
TIMKEN - 3846 Change: 147.55 (3.99 %)News:
Timken plans to set up a manufacturing facility at Bharuch, Gujarat to manufacture spherical roller bearings (SRB) and cylindrical roller bearings (CRB) and components thereof. The company already has a manufacturing plant at Bharuch, Gujarat wherein primarily tapered roller bearings (TRB) and its components are manufactured. The new facility will be set up at the same premises wherein the existing plant is situated
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Addition of new capacity will enhance the manufacturing capacity of the company. SRB and CRB are used in industrial applications where there are heavy load and moderate speed like wind turbines, gearboxes, mining and construction equipment. Timken is working at maximum capacity utilisation in India. The company, at present, does not manufacture SRB and CRB in India. SRB and CRB are mainly imported from Timken group companies across the world and sold in India. We believe that SRB and CRB overall have good market in India and indigenisation will help Timken in expanding its EBITDA margins. Expected commercial production start date is January 2025. Capex of Rs 600 crore is estimated while financing will be done through internal accruals
Impact:
Positive