Banco Products has been one of the foremost manufacturers of radiators and gaskets in India. These products are supplied to the automobile manufacturers like Tata Motors, Maruti Suzuki, Mahindra & Mahindra (M&M) and Ashok Leyland (ALL).
Banco sells around four fifths of its products to original equipment manufacturers (OEMs) and the rest of it is embattled at the replacement market.
Not only the car manufacturers are affected with the decrease in sales due to high interest rates but also the auto component manufacturers and one among them is Banco. One-third of Banco’s sales come from exports and this illustrates that the domestic auto slowdown will not be as callous on the company as for other players in the industry.
Around 30% of its sales are from the non-auto segment like earth-moving equipment and industrial engines. However, the organization anticipates this segment to do much better and enhance the company’s overall financials. In fact, Banco’s business is not much in risk as compared to other auto manufacturers who count completely on the automobile industry.