Sansera Engineering | BMW Motorrad: Sansera Engineering close to bagging Rs 300 to 400 crore order from BMW Motorrad

Bengaluru-based Sansera Engineering, a high precision component maker, is in an advanced stage to grab its first order from BMW Motorrad worth about Rs 300-400 crore, for the supply of aluminium forging components, people in the know said.

The order from the motorcycle brand of BMW will be a validation of the company’s ability to manufacture small aluminium forged components and will likely help it win more high-value orders from other marquee global customers.

Also, besides the incremental business, the order for high margin aluminium forged components will add to its bottom line.

A formal announcement of the order is expected in the next 3-4 days.

An email sent to Sansera seeking comment did not generate any response till press time Thursday.

The company has outstanding orders of Rs 1,400 crore on its book, across 49 customers in auto and 30 from non-auto sectors. About 9% of these outstanding orders are from electric vehicles and fuel-agnostic solutions. In the last fiscal year, EV and fuel agnostic-solutions accounted for 5% of revenue. Sansera plans to increase this to 15% in the next five years, according to its quarterly presentation for the December 2021 quarter.

Sansera Engineering will be supplying aluminium forging components primarily for the new models of BMW Motorrad. There will be more than 20 aluminium forging parts to BMW Motorrad which will mostly be used in suspension and chassis systems.

Since these aluminium forging parts manufactured will be powertrain-agnostic, these will be used in the forthcoming models for internal combustion engine as well as electric vehicles.

To be sure, the company has been already supplying aluminium forging parts to KTM and Husqvarna and plans to expand its powertrain-agnostic revenue share as global automakers are moving towards light weighting to meet new stringent emission standards and expanding the range for EV vehicles.

In the first nine months of FY22, the bike and scooter business accounted for 48% of the total revenue, followed by 27% from passenger cars, 13% commercial vehicles and the remaining 12% from non-auto.

The company’s revenue grew 32% YoY to Rs 1,423 crore in the first nine months of fiscal 2022, with an operating margin of 17.5%. Overseas markets account for 35% of the total revenue, and a quarter of that came from Europe.

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