Samkrg Pistons & Rings Ltd

About the Company

SAMKRG was set up in March 1985 by Mr. S D M Rao, who is currently its chairman and managing director. The company manufactures Pistons, Piston pins and piston-rings. While its main plant is in Hyderabad, it has two other plants at Srikakulam near Visakhapatnam. SAMKRG caters mainly to the two-wheeler segment (accounted for 94% of its revenue in fiscal 2017), and has limited presence (6%) in the four-wheeler segment. * Established position in domestic pistons and piston-rings market: SAMKRG has an established market position in the piston and piston-rings market catering to a strong and diversified customer base in the two-wheeler market. This is well supported by the promoters' experience of more than two decades in piston manufacturing. In the original equipment manufacturers (OEM) segment, company has a long standing relationship with major two wheeler manufacturers and caters to a major share of their piston requirements. Company also has a leading market position in the replacement market, operating through a strong and wide network of dealers and distributors across India. SAMKRG is also active in capitalizing opportunities in the exports market (about 15% of net sales in fiscal 2019), driven by its superior quality products and technical expertise from Japan and German consultants.   SAMKRG's diversified customer base protects the company from risks associated with customer concentration. CRISIL believes that SAMKRG will maintain a stable business risk profile over the medium term, backed by its promoters' extensive experience and established relationship with customers.   Company had spent about Rs 20 crore during fiscal 2019 towards upgrading the facilities to meet BS VI norms. The upgraded facilities has led to better realizations for BS-VI compliant products from fiscal 2020. CRISIL expects this trend to translate into healthy revenue growth with stable operating margins in the medium term.