About OBSC Perfection Limited

OBSC Perfection is a precision metal component manufacturer offering a diversified suite of precision engineering products which are high-quality engineered parts across end-user industries and geographies. They primarily cater to top original equipment manufacturers (“OEMs”) who ultimately supply various components and parts to top automotive manufacturing companies of India. In non-automotive sector, they cater to manufacturers of Defense, Marine & Telecommunication Infrastructure industries. At present, their core expertise lies in serving the automotive industry i.e. supplying OEMs. As a result of which, currently, majority of their business comes from auto industry and defense, marine, and telecommunication infrastructure sectors forms a small portion of the business. 

They operate out of four strategically located manufacturing facilities with three of their manufacturing facilities including their principal manufacturing facilities at Pune, Maharashtra, a prominent auto hub. They manufacture a wide range of precision metal components including but not limited to cut blanks, shafts / spline shafts, torsion rods, piston rods, rack bar semi-finished, pinion, drive shafts, gear shifters, cable end fittings, sensor boss, sleeves, push plate, hubs, housing – brass and aluminium, fork bolt, fasteners, connectors, ball pin, ball pin housing, flange, male female ring, dozing adapter, housing for a diversified base of customers. They are part of the Anglian Omega Group, which began operations in 1969 with a single bright bar factory in Faridabad, Haryana. 

INDIAN AUTO COMPONENTS SECTOR IN INDIA
India has become the fastest-growing economy in the world in recent years. This fast growth, coupled with rising incomes, a boost in infrastructure spending and increased manufacturing incentives, has accelerated the automobile industry. The two-wheeler segment dominated the automobile industry because of the Indian middle class, with automobile sales standing at 23.85 million units in FY24. 

Significant demand for automobiles also led to the emergence of more original equipment and auto components manufacturers. As a result, India developed expertise in automobiles and auto components, which helped boost international demand for Indian automobiles and auto components. Hence, the Indian automobile industry has a considerable impact on the auto component industry. 

India’s auto component industry is an important sector driving macroeconomic growth and employment. The industry comprises players of all sizes, from large corporations to micro entities, spread across clusters throughout the country. The auto components industry accounted for 2.3% of India’s GDP and provided direct employment to more than 1.5 million people. By 2026, the automobile component sector will contribute 5-7% of India's GDP. The Automotive Mission Plan (2016-26) projects to provide direct incremental employment to 3.2 million by 2026.

The Indian auto components industry is expected to grow to US$ 200 billion by FY26. This growth will be backed by strong export demand which is expected to rise at an annual rate of 23.9% to reach US$ 80 billion by 2026 due to the high development prospects in all vehicle industry segments.

India’s auto components industry’s market share has significantly expanded, led by increasing demand for automobiles by the growing middle class and exports globally. Due to the Oz670 growth in demand for Indian auto components, several Indian and international players have entered the industry. India’s auto component industry is broadly classified into organised and unorganised sectors. While the unorganised sector consists of low-valued items and mostly serves the aftermarket category, the organised sector serves OEMs and includes high-value precision instruments. 

The automobile component industry turnover stood at Rs. 6.14 lakh crore (US$ 74.1 billion) during FY24, registering a revenue growth of 9.8% as compared to FY23. Domestic OEM supplies contributed ~54% to the industry’s turnover, followed by domestic aftermarket (~10%) and exports (~18%), in FY24.The component sales to OEMs in the domestic market grew by 8.9% to Rs. 5.18 lakh crore (US$ 62.4 billion). The aftermarket for auto components grew by 10.0% during FY24 reaching Rs. 9.38 lakh crore (US$ 11.3 billion). Over FY16 to FY24, the automotive components industry registered a CAGR of 8.63%, reaching US$ 74.1 billion in FY24. 

As per the Automobile Component Manufacturers Association (ACMA) forecast, auto component exports from India are expected to reach US$ 30 billion by 2026. The auto component industry is projected to record US$ 200 billion in revenue by 2026. Strong international demand and resurgence in the local original equipment and aftermarket segments are predicted to help the auto component industry grow 20-23% in FY22. 

In fiscal year 2023-24 (April-January), the total number of automobiles sold was 19.72 million units. In (AprilJanuary) 2023-24, the total production of passenger vehicles, commercial vehicles, three-wheelers, twowheelers, and quadricycles was 23.36 million units.

INDIAN ENGINEERING SECTOR OUTLOOK
The engineering sector is the largest of the industrial sectors in India. It accounts for 27% of the total factories in the industrial sector and represents 63% of the overall foreign collaborations. Demand for engineering sector services is being driven by capacity expansion in industries like infrastructure, electricity, mining, oil and gas, refinery, steel, automobiles, and consumer durables. 

Imports of Electrical Machinery in India increased to US$ 12.30 billion in FY24. The Indian electrical equipment industry comprises of two broad segments, Generation equipment (boilers, turbines, generators) and Transmission & Distribution (T&D) and allied equipment like transformers, cables, transmission lines, etc. The sector contributes about 8% to the manufacturing sector in terms of value, and 1.5% to overall GDP. Incentives for capacity addition in power generation will further increase the demand for electrical machinery. 

The quick estimates of Index of Industrial Production (IIP) for FY24 came at 156.2, improving from 146.7 in FY23. 

The electrical equipment market share in India is expected to increase from US$ 52.98 billion in 2022 to US$ 125 billion by 2027, implying a robust CAGR of 11.68%. The domestic electrical equipment market is expected to grow at an annual rate of 12% to reach US$ 72 billion by 2025. 

Earthmoving equipment sales grew by 23% YoY in second quarter of FY 2024, as the total equipment numbers sold increased to 22,334. 

Foundry industry has a turnover of approx. US$ 20 billion with exports of approx. US$ 3.54 billion. 

There are 750–800 domestic Medical Devices manufacturers in India, with an average investment of US$ 2.3– 2.7 million and an average turnover of US$ 6.2-6.9 million. 

The Indian industrial fasteners market was valued at US$ 9,064 million in 2022 and is projected to reach US$ 17,868 million by 2030, registering a CAGR of 7.9% during the forecast period (2023-2030). 

The Indian agricultural equipment market has reached a value US$ 10.25 billion in 2023 and is anticipated to grow at a CAGR of 5.24% through 2029.

The Indian machine tool market size reached US$ 1.5 billion in 2023 and is expected to reach US$ 3.2 billion by 2032, exhibiting a growth rate (CAGR) of 8.2% during 2024-32. 

The Indian automated material handling (AMH) market was valued at US$ 1,353.8 million in 2020 and is expected to go up to US$ 2,739.34 million by 2026 at a CAGR of 12.7%.

OBSC PERFECTION LIMITED COMPETITIVE STRENGTHS
1. Manufacturing facilities situated at two of the most prominent auto hubs of India
2. Strategic advantage through streamlined supply chain with adjacent raw material supplier
3. Consistent track record of growth and financial performance
4. Experienced and dedicated promoter and professional management team with extensive domain knowledge

OBSC PERFECTION LIMITED STRATEGIES
1. Strengthening their core capabilities by expanding their production capacity
2. Expanding their manufacturing footprint by setting up of a manufacturing facility in Sanand, Gujarat
3. Entering precision clamping solutions for the machining industry

OBSC PERFECTION LIMITED RISK FACTORS & CONCERNS
1. The business is dependent on the performance of the automotive industry.
2. A downgrade in credit ratings of the promoter group entity, Omega Seiki Mobility Private Limited.
3. The Company is dependent on a domestic market for its sales and any downturn in it could reduce the sales.
4. Their three manufacturing facilities are located in Pune, Maharashtra and Thiruvallur, Tamilnadu which exposes their operations to potential risks arising from local and regional factors.
5. A significant portion of the domestic sales are derived from the West zone and South zone.