RS Group CFO Raja Gopal Sastry explained that as vehicles become more premium, there is increasing demand for advanced braking systems, upgraded suspensions and higher quality castings and forgings, providing an opportunity for growth.
The company also plans to expand into the four-wheeler sector in India.
“In India, we are making targeted investments in some regions, building plants for the four-wheeler business, both in the domestic market and for export. We will look into the possibility of also offering suspension and brake systems in the four-wheeler market, as we manage to identify partners with whom we will work,” he said.
Endurance Technologies currently sources approximately 25% of its four-wheeled vehicle business in Europe.
Endurance Technologies is optimistic about a recovery in electric vehicle (EV) orders in the European market and anticipates a significant rebound in November.
Sastry said: “Based on discussions with the teams in Europe, we are seeing a chance of recovery in the next few months, around November. But we are focusing on internal strengths, on keeping our cash position positive, on keeping our investments healthy, so that when this turnaround happens in Europe, we can capitalise on it and get more volumes.”
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Sastry is focused on taking the company to a pivotal point where it can fully leverage the significant untapped potential within its current business operations.
Resistance Technologies offers a range of high-quality products including brake systems for 350cc vehicles, castings and suspensions, all aimed at improving vehicle performance and road safety.
He sees substantial opportunities to expand in segments and vehicle models where the company is not yet active, particularly in the Indian market.
On the operational front, Sastry stressed the importance of improving efficiency through data analytics and strengthening the management team. He noted that setting proactive targets would improve the company’s bottom line.
In addition, maintaining high cash reserves will allow Endurance Technologies to take advantage of organic and inorganic growth opportunities as they arise.
The company, which has a market capitalisation of ₹35,098 crore, has seen its shares rise 53% over the past year.
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