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Informist, Friday, Dec. 13, 2024

 

By Rajesh Gajra

 

NEW DELHI – Endurance Technologies Ltd.'s planned foray into dual-channel anti-lock braking system is progressing steadily, a senior official of the company told Informist in an exclusive interaction Friday. The demand for the new product came from some select customers, he said. The product's tuning, calibration, and testing process is currently underway at the company as well as clients' end to match the precise requirement of the clients.

 

In November, the company had said that the dual-channel anti-lock braking system development was at an advanced stage and is expected to start production in Jan-Mar. The official, who did not wish to be named, said that once the customers were satisfied with the product they would place orders within a couple of months and the company will formally commence production.

 

Endurance Technologies is a major manufacturer of automotive components supplying braking systems, suspension products, and transmission products, aluminium die castings, and embedded electronics products, to key domestic two-and three-wheeler manufacturers, and European four-wheeler makers. Bajaj Auto Ltd. is the largest customer of the company.

 

The company started manufacturing single-channel anti-lock braking system in September 2021 and has sold around 700,000 of these units as of the end of the September quarter, particularly for two-wheelers. An anti-lock braking system on scooters and motorcycles prevents locking of brakes and fatal skidding. It is considered as a high technology and high value addition in the auto industry.

 

A dual-channel anti-lock braking unit provides higher safety than a single-channel one and is generally used for two-wheelers powered by 150 and above cubic capacity engine. Endurance Technologies said in its annual report for 2023-24 (Apr-Mar), released in July, that it has an annual production capacity of 240,000 units for dual-channel anti-lock braking systems. The company had earlier planned to commence production of dual-channel anti-lock broking systems in Apr-Jun but that did not materialise.

 

The official said that the development of the high-safety dual-channel anti-locking braking product was a joint effort between the company and select customers. The product design and specifications by customers had to be balanced with cost factors, he said.

 

Endurance Technologies is also enhancing its brakes' steel braided hoses technology by setting up an in-house manufacturing capability. The official said a new manufacturing facility for the steel braided brake hoses and discs is coming up in Aurangabad in a second brakes plant. In a post-September quarter earnings conference call with analysts in November, the company had said the new brake plant is expected to go into production in January, and it will give the company "additional brake assembly orders for exports and for Indian OEM (original equipment manufacturers)."

 

The official told Informist that the company is serious about its aim to enter into proprietary manufacturing of automotive parts for four-wheelers in the domestic market. "In the coming financial year (FY26) something will be announced formally in this regard," he said. The company has already publicly revealed its pursuit to offer technology-intensive products to the domestic four-wheeler manufacturers through technology agreements, joint ventures, and other forms.

 

In Europe, the company's subsidiaries already focus on four-wheeler makers, and plans to grow organically and through mergers and acquisitions. Friday, the company announced, through a stock exchange filing, that it was acquiring a 60% stake each in two German companies--Stoferle Automotive GmbH and Stoferle GmbH--through its Italy-based subsidiary Endurance Overseas. The two companies, with a combined turnover of 89.3 million euros, are manufacturers of machined aluminium castings for automotive applications.

 

The company official said these acquisitions will expand the overseas four-wheeler market base as the manufacturing will be in Germany. In India, the company is constructing a new building in its Chakan castings plant to cater to four-wheeler machined casting requirements. The company is aiming to improve quality standards and optimise costs from the automation of the production process.

 

Shares of Endurance Technologies ended Friday 0.4% down at INR 2,281.20 on the National Stock Exchange.  End

 

Edited by Akul Nishant Akhoury

 

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