Brakes India To Clock 15-20% Growth In Revenue This FY, Says MD Sriram Viji

Brakes India, a TSF Group company (part of the erstwhile TVS group), is expecting a growth of 15-20 per cent in revenue during the current financial year, a top company executive told Business Standard.

The group is one of the largest players in the braking systems business, with a leading share in the market for domestic original equipment manufacturers (OEMs), including the commercial vehicle (CV) and tractor segments. “For us, 2021-22 was a year of growth. We closed 2021-22 with more than Rs 5,000 crore in revenue. We are seeing further uptick in 2022-23. We are expecting a growth of 15-20 per cent in 2022-23,” said Sriram Viji, managing director, Brakes India.

According to reports, the company has posted a revenue of Rs 5,488 crore in 2021-22, up 41 per cent from Rs 3,885 crore in 2020-21. The company indicated the ongoing crisis in Europe and the United States due to slowdown and the Ukraine war is unlikely to have any major impact on its business. “For us, exports is a big share, this year close to around Rs 1,500 crore of exports we have clocked. Our order books are reasonably stable now. Our long-term observation is that India is seen as an area of relative stability,” Viji said.

"There is a very positive energy in the company right now that is driving our development over the next five years. This is also supported by the significant recovery in the automotive market across all segments combined with our growing export order book of close to Rs 1500 crore. We have ramped up our investments in product development significantly in addition to augmenting capacity and our international reach,” Viji added.

According to a report by Crisil recently, Brakes India derives 23 per cent of its total revenue from exports in the brakes and foundry divisions. Also, around 75 per cent of the turnover comes in from Europe. “Any significant demand weakness from the European region will constrain the pace of growth in the export business,” the report had said.

The company said that it is also not seeing any impact of the rising number of Covid cases in China. “We are not seeing any impact because of Covid in China. We export mainly to Europe, the US and South East Asia. We are quite India focussed and hence there may be no major impact of the recession and the war,” said Badri Vijayaraghavan, executive director, Brakes India.

In Auto Expo 2023, Brakes India unveiled their motor on drum brakes for the passenger car segment. The company, with over 60 years of expertise in the mobility space, also displayed their air braking system, iron castings and the aftermarket portfolio for both light and commercial vehicle segments.