SJS Enterprise - Betting on Auto cycle revival ๐งต๐งต
SJS Enterprise is an recently listed Auto Ancillary company which is in the business of making decorative aesthetics for Auto & consumer Durable companies.
SJS Enterprise is an recently listed Auto Ancillary company which is in the business of making decorative aesthetics for Auto & consumer Durable companies.
Let's start with simplifying what does the company actually do.
So what are decorative aesthetics?
So decorative aesthetics are simply but the logos, Decals, stickers , aluminium badges, chrome-plated parts , overlays etc which inhance the overall look of the product.
So what are decorative aesthetics?
So decorative aesthetics are simply but the logos, Decals, stickers , aluminium badges, chrome-plated parts , overlays etc which inhance the overall look of the product.
Products like appliques and overlays and optical plastics also deployed for their functional attributes (Like protecting the buttons or the screen etc) in additio t their role in increasing the aesthetic value of a product.
Let me show you some examples -
Let me show you some examples -
So the company caters to - 2 wheelers, Passenger vehicles & consumer durables.
1st let's take a look at the whole decorative aesthetics industry.
SO if we break-down the demand by application segment -
52% by two wheelers
39% by passenger vehicles
8-10% by consumer durables
1st let's take a look at the whole decorative aesthetics industry.
SO if we break-down the demand by application segment -
52% by two wheelers
39% by passenger vehicles
8-10% by consumer durables
And if we break-down the demand by product segment then -
34-36% was lead by decals, stickers & aluminium badges
followed by Chrome-plated products (23-15%), IMD/IML (12-14%) & appliques - 9-11%
34-36% was lead by decals, stickers & aluminium badges
followed by Chrome-plated products (23-15%), IMD/IML (12-14%) & appliques - 9-11%
The current Decorative aesthetics market in India is around 19.9 Billion Rs which is expected to grow at a CAGR of 20% to 49.2 Billion by 2026 (According to CRISIL report) mainly led by demand from passenger vehicles (Expected to reach 45% from current 39% of overall demand)
If we break-down by product segment, then IMD/IML & optical parts are expected to grow >30% CAGR followed by Chrome plated products by 23%.
What are the key growth triggers?
- India is a growing market and 2w & passenger vehicle production is expected to grow by 10-12% over FY2021 -2026.
- In the same period, demand for consumer production is expected to grow by 10-12% CAGR.
- Shift from 2D to 3D appliques/dials
- India is a growing market and 2w & passenger vehicle production is expected to grow by 10-12% over FY2021 -2026.
- In the same period, demand for consumer production is expected to grow by 10-12% CAGR.
- Shift from 2D to 3D appliques/dials
- Shift from analogue to analogue- digital appliques/ dials: Popular two wheeler models such as Hero Passion Pro, Bajaj
Pulsar 125, Hero Glamour offer analogue- digital dials which cost around 6 to 8x times of pure analogue dial
Pulsar 125, Hero Glamour offer analogue- digital dials which cost around 6 to 8x times of pure analogue dial
- Shift from analogue to touch based navigation system in cars
- Shift from traditional overlays to capacitive touch overlays : Decorative aesthetic
manufacturer makes 1.8 to 2x realisation in capacitive overlays compared to traditional overlays
- Shift from traditional overlays to capacitive touch overlays : Decorative aesthetic
manufacturer makes 1.8 to 2x realisation in capacitive overlays compared to traditional overlays
Now let's talk about the company -
1. HISTORY - The company was started in 1987 by Mr Srinivasan & Sivakumar.
Their journey began with the manufacturing of reflective stickers for publicity related activities for consumer & appliance industry.
1. HISTORY - The company was started in 1987 by Mr Srinivasan & Sivakumar.
Their journey began with the manufacturing of reflective stickers for publicity related activities for consumer & appliance industry.
Soon they started operator control panels for dot matrix printers for companies like TVS & Wipro.
1st Hyundai Santro model in India was rolled out with their dials.
In 2015, Srinivasan & Sivakumar decided to retire & Everstone invested and took at majority stake.
1st Hyundai Santro model in India was rolled out with their dials.
In 2015, Srinivasan & Sivakumar decided to retire & Everstone invested and took at majority stake.
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