DECEMBERASIA BUSINESS OUTLOOK8Bengaluru-based high-precision component maker Sansera Engineering is set to bag an order worth $400-500 million from a leading North American car maker for supply of connecting rods, according to people in the know, close on the heels of landing a large order from German carmaker BMW.A formal declaration of the order is expected in the next two or three days, the people cited earlier said, adding that Sansera is expected to set up a plant with an investment of $25-35 million to facilitate this.An email sent to Sansera remained unanswered till as of press time. Sansera, which is among the top 10 global suppliers of connecting rods for passenger cars, will be supplying parts for a new programme of the American car maker that would be based on new advanced engine technology to increase mileage and reduce carbon emission.The contract is spread over a period of six years and even the content per vehicle for Sansera is higher, the sources said. It would be supplying over 30 million parts over the entire lifecycle of the project, they said.According to Sansera's earnings presentation, exports accounted for about 37 percent of its total revenue in the first nine months of FY22. US-based customers accounted for 10 percent of the total revenue between April and December 2021, a gain of 300 basis points on YoY basis.In 2020, Sansera held a global market share of 2.3 percent in the linking rods space compared with 0.9 pecent in 2015, as several automakers which were manufacturing engine components in-house started outsourcing due to shrinking product lifecycle and cost competitiveness.Consequently, the company's global market share is expected to expand despite the falling share of the internal combustion engine segment.Sansera is also focusing on its offering in the technology agnostic components space to expand its share of business in the electric vehicles and non-auto segments.Earlier this month, the firm bagged a Rs 300-crore order from BMW Motorrad to supply aluminium forged and machined parts.Sansera has an outstanding order book position of Rs 1,400 crore across 49 customers in the auto segment and 30 in the non-auto segment. Some nine percent of these outstanding orders are from electric vehicle makers and fuel agnostic solutions providers.In the first nine months of FY22, Sansera's bike and scooter segment business accounted for 48 percent of its total revenue, followed by passenger cars at 27 percent and commercial vehicles at 13 percent.The company's revenue grew 32 percent YoY to Rs 1,423 crore between April and December 2021, with an operating margin of 17.5 percent.According to an ICICI Securities report, Sansera's revenue is expected to be at Rs 2,614 crore in FY24, a growth of 19 percent annually between FY21 and FY24. NEWSROOMSANSERA ENGINEERING SET TORAISE $400-500 MILLION ORDER FROM US CAR MAKERSANSERA IS ALSO FOCUSING ON ITS OFFERING IN THE TECHNOLOGY AGNOSTIC COMPONENTS SPACE TO EXPAND ITS SHARE OF BUSINESS IN THE ELECTRIC VEHICLES AND NON-AUTO SEGMENTS
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