### **Overview** Shriram Pistons & Rings Limited (SPRL), established in 1963, is India’s leading manufacturer of core internal combustion engine (ICE) components—pistons, piston pins, piston rings, and engine valves—marketed under the well-recognized brands **‘SPR’** and **‘USHA’**. The company is the largest exporter of these components globally and a dominant player in both OEM and aftermarket segments. It operates across commercial vehicles, passenger vehicles, tractors, two- and three-wheelers, off-highway, industrial engines, railways, and defense sectors. With revenue growing from **₹16,160 million in FY21 to ₹36,612 million in FY25**, SPRL has demonstrated robust scale-up, underpinned by strategic diversification, innovation, and expansion. --- ### **Strategic Business Model: Powertrain-Derisked & Multi-Track Growth** SPRL has evolved from a traditional piston components manufacturer into a **multi-technology powertrain solutions provider**, mitigating risk from EV disruption through: 1. **Diversified Powertrain Portfolio** - **ICE Components**: Core strength in pistons, rings, pins, and valves for gasoline, diesel, and alternative fuel engines. - **Alternative Fuels**: Active development in **CNG, LNG, PNG, H-CNG, hydrogen (H₂-ICE), biofuels, flex-fuel, and ethanol-blended fuels**, aligning with India’s energy transition roadmap. - **Hybrid Powertrains**: Supplies components used in hybrid systems, recognizing the transitional role of ICE in early EV adoption. - **Electric Mobility**: Full entry into EVs via subsidiaries, offering **motors, controllers, and complete powertrain systems**. 2. **Non-ICE Expansion** Over 50% of SPRL’s business now comes from **aftermarket, exports, and non-automotive segments** such as: - Marine engines, compressors, snowmobiles, lawn mowers, gensets, railways, and defense. - These segments have longer product lifecycles and serve as a stabilizing buffer against powertrain disruption. --- ### **Strategic Acquisitions & Subsidiary-Based Diversification** SPRL’s transformation is being driven by **SPR Engenious Ltd. (SEL)**, its wholly-owned innovation and diversification arm. #### **Key Acquisitions (2023–2025):** | Acquisition | Date | Purpose & Capability | |-----------|------|------------------------| | **SPR EMF Innovations Pvt. Ltd. (EMFi)** | Jan 2023 | Entry into e-mobility: designs & manufactures **EV motors (250W–300kW) and controllers** for 2Ws, 3Ws, passenger cars, and HCVs. R&D in Singapore, manufacturing in Coimbatore. Partnerships with **Greatland Electrics (motors)** and **Wuxi Lingbo (controllers)**. | | **SPR Takahata Precision India Pvt. Ltd. (TPIPL)** | Oct 2023 | Expanded into **high-precision plastic injection molding** (20T–350T capacity), manufacturing parts for steering, braking, airbags, throttle units, and ADAS. Technical collaboration with **Takahata Japan**. | | **SPR TGPEL Precision Engineering Ltd.** | Dec 2024 | Full acquisition of **Timex Group’s former precision engineering arm**, with mold-making expertise and two Noida facilities. Strengthens **plastic components** for automotive, medical, and consumer sectors. | | **Karna InterTech Pvt. Ltd.** | Apr 2025 | Acquisition of gravity die-casting molds supplier, enabling **backward integration** in piston manufacturing and protecting IP. | These acquisitions form a **"plastics + EV" growth engine**, creating synergies in lightweighting, EV systems, and high-margin precision components. --- ### **Technology & Innovation Edge** - **DSIR-recognized Technology Centre** in India supports end-to-end design, simulation, testing, and validation for next-gen engines and EV systems. - **Patents & R&D**: Two patents granted and four pending, including a **composite chromium plating with diamond particles** for enhanced piston ring durability. Active R&D in E100 fuel storage, hydrogen compatibility, and low-emission combustion. - **Fungible Production Lines**: Five assembly units (Ghaziabad, Alwar, Pune, Hosur, Becharji, Sahibabad, Gujarat) and **six manufacturing facilities**, with flexible capacity across product segments and vehicle types. - **Global Tech Collaborations**: - Kolbenschmidt (Germany) since 1972: piston manufacturing. - Honda Foundry (Japan) since 1989: piston design. - Riken Corp (Japan) since 1978: piston rings. - Fuji Oozx (Japan) since 1993: engine valves. - Recent tech imports: PVD coatings, FEA simulation, advanced alloys (KS312), and profile treatments. - **EV Tech Development**: - In-house **R&D center at EMFi (Coimbatore)** for BLDC, SRM, PMSM motors and controllers. - Localized “**Make in India**” motor production, with **80%+ domestic content** ambition. - New EMFi plant under construction for **mid-drive motor ramp-up**, operational by mid-2025. --- ### **Growth Drivers & Market Positioning** #### **1. Aftermarket Strength** - Accounts for ~25–26% of revenue. - Driven by rising Indian vehicle park (from 1M to 4–5M vehicles in 10 years) and a **120–130 million-unit installed base**. - Customers increasingly prefer **genuine SPR/USHA parts** over low-quality alternatives (e.g., failing Chinese pistons). - **1,200+ distribution partners** and **22 logistics hubs** across India and 45+ countries. #### **2. Export Resilience & Global Position** - Exports: ~19% of revenue (FY23), primarily to Europe (largest), US, and UK. - Serves Tier 1s and OEMs like **Volkswagen, BMW, Honda, Cummins, Caterpillar, Suzuki, Denso, Mitsubishi, Ashok Leyland, Tata, Maruti, Mahindra**. - Despite **20–22% export drop in 2024–25 due to geopolitical tensions**, SPRL mitigated loss via entry into **snowmobiles, marine, and compressors**, limiting decline to 4–5%. - Positioned to benefit from **“China plus one” sourcing** and India’s rise as a global auto export hub. #### **3. OEM Strategy & New Platform Wins** - Securing early design-phase involvement in **new vehicle platforms** with key customers. - Collaborating on **ground-up product development**, moving from component to **system-level supplier**. - Supplying **conrods, valve seats, and guides** as integrated packages—increasing value per vehicle. - Strong engagement in hybrid platforms, as hybrids still require advanced ICE components. #### **4. EV Ambitions** - **SPR EMFi** product range: 250W–300kW motors (hub & mid-drive), targeting e-2Ws, e-3Ws, LTVs, and buses. - Focused on **India-specific solutions** (heat, terrain, load conditions) with ground-up design. - Plans to scale to **500,000+ motors and controllers annually**. - **Capex of ₹700 million** committed for Coimbatore EV plant, supported by MoU with Tamil Nadu government. --- ### **Financial & Operational Highlights** - **Capex Investments**: Over **₹550 crores** in past 5 years, focused on automation, digitization (Industry 4.0), debottlenecking, and new facilities. - **High Precision Plastics Business**: - Operates **250–300 injection molding machines** across TPIPL and TGPEL. - EBITDA margin of **~23%**, ROCE ~24%, expected to be **EPS-accretive immediately**. - Supplies to **Continental, Motherson, Denso, Havells, Gillette, Kohler, Nidec, Schaeffler**. - **Geographic Reach**: Presence in **45+ countries**, with long-term supply contracts securing stable demand.