IGARASHI MOTORS INDIA LIMITED

IGARASHI MOTORS INDIA LIMITED

Previous company name
CG IGARSHI MOTORS LIMITED
Name change date
4/21/2005
Company Overview
Igarashi Motors India Limited, formerly known as CG Igarshi Motors Limited, is a public company engaged in the development, production, and sale of direct current (DC) motors and DC motors with accessories. The company was established in 1993. The registered head office of the company is located in Chennai, India. It is listed on the Bombay Stock Exchange with stock code 517380.
Igarashi Motors offers a wide range of products that include automotive motors, motors for use in office automation equipment, household electrical appliance motors, and motors for use in power tools and electric reels.
The company offers its products to the automotive industries in India. It also sells some of its products in the United States and Europe.
The company is also involved in the provision of assembly service, such as end cap/case/armature.
Business Summary
The Company is engaged in the business of auto components for automobiles. The Company produces Micro motors and its accessories primarily for the automotive sector. During the fiscal year ended March 31, 2010 (fiscal 2010), the Company produced 7,854,211 numbers of electric micro motors. As of March 31, 2010, the Company had installed capacity to produce 9,000,000 numbers of electric micro motors. The Company’s subsidiaries include Igarashi Electric Works (H K) Ltd, Igarashi Motor Sales LLC, Igarashi Motoren GMBH, and Agile Electric Drives Technologies and Holdings Pvt Ltd. The Company’s associate companies include IJT Plastics & Tools Pvt. Ltd., Agile Electric Sub Assembly Pvt. Ltd. and Agile Electric Technologies Pvt. Ltd. The Company’s holding company is Igarashi Electric Works Ltd in Japan.
Description and history
The Company is engaged in the business of auto components for automobiles. The Company produces Micro motors and its accessories primarily for the automotive sector. During the fiscal year ended March 31, 2010 (fiscal 2010), The Company produced 7,854,211 numbers of electric micro motors. As of March 31, 2010, The Company had installed capacity to produce 9,000,000 numbers of electric micro motors. The Company’s subsidiaries include Igarashi Electric Works (H K) Ltd, Igarashi Motor Sales LLC, Igarashi Motoren GMBH, and Agile Electric Drives Technologies and Holdings Pvt Ltd. The Company’s associate companies include IJT Plastics & Tools Pvt. Ltd., Agile Electric Sub Assembly Pvt. Ltd. and Agile Electric Technologies Pvt. Ltd. The Company’s holding company is Igarashi Electric Works Ltd in Japan.
The Company was incorporated on January 10, 1992. The Company started with production of DC niche permanent magnet micromotors that find applications in numerous industries including automobile, power tools and domestic appliances. Micromotors alone proved insufficient for profitable operations and the Company changed focus to rotor assembly that opened a new market of motor manufacturers. Presently, rotor sales account for 93% of the Company’s revenue.
The Company has about 125 products in its portfolio and sells them abroad. Europe accounts for 60% of revenue, USA 30% and Australia the remaining 10%. Meritor is currently the largest customer, accounting for 70% of revenue. Automobile giants like GM, Honda, Renault and Mitsubishi are among its customers.
Two major dimensions of the Company’s competitive strategy are low cost supply and diversification of customer base. Cost competitiveness is sought through intelligent engineering productivity and low cost automation. As part of diversification, the Company works with its customers to find new products that could be economically outsourced.
The Company is a joint venture between Crompton Greaves and Igarishi Electric Works of Japan.
For the latest year ended March 31, 2006, the Company’s sales rose 69% to Rs 1,753 million from the previous year. However, profits after tax fell 64% to Rs 11.23 million compared to Rs 31.62 million for 2005. Increases in interest and depreciation led to fall in profits.
For the latest quarter ended September 2006, sales rose from 43.45% to Rs 643.93 million but PAT fell from 47.31% to Rs 25.57 million.
Recent Developments
15 February 2008
The Company had a joint venture agreement with German-based Robert Bosch for establishment of a new company for development, manufacture, and sale of automotive components. The new company will start operations in the second half of 2008 for developing, manufacturing and selling DC Motors and Systems for wiper, HVAC, engine cooling and window lift applications for the fast growing Indian automotive market. The joint venture will be headquartered in Chennai, India.

Formerly known as CG Igarshi Motors Limited

Business Line
Engaged in the development, production, and sale of direct current (DC) motors and DC motors and its accessories
Subsidiary

Advisor
SHARP & TANNAN
IPO date
5/2/2000
US SIC Code
3621
Company Address
Mepz, Plots No.b-12 To B-15, Phase Ii
Sez, Tambaram
City province or state postal code
600 045, CHENNAI
Phone: +91 044-22628199
Fax: +91 044-22628143
Country address: INDIA
Website url: www.igusa.com