| Issue Size – 14,481,942 shares | Issue Open/Close – Nov 30/Dec 02, 2022 |
| Price Band (Rs.) 548-577 | Issue Size- Rs 794-836 bn |
| Face Value (Rs) 10 | Lot Size (shares) 25 |
Uniparts India Limited (Uniparts) was incorporated on September 26, 1994. Uniparts India ltd is a global manufacturer of engineered systems and solutions, and it is one of the leading suppliers of systems and components for the off-highway market in the agriculture and construction, forestry and mining, and aftermarket sectors on account of their presence across over 25 countries. Uniparts India ltd is a concept-to-supply player for precision products for off-highway vehicles with a presence across the value chain. Their product portfolio includes core product verticals of 3-point linkage systems (3PL) and precision machined parts (PMP) as well as adjacent product verticals of power take-off (PTO) fabrications and hydraulic cylinders or components thereof.
In India, Uniparts India ltd has 5 manufacturing facilities, 2 at Ludhiana, 1 at Visakhapatnam, and 2 at Noida. They also have set up a distribution facility in Noida. In the United States, they have a manufacturing, warehousing, and distribution facility at Eldridge, Iowa, acquired in 2005 by Olsen Engineering LLC, now known as Uniparts Olsen Inc., and a warehousing and distribution facility at Augusta, Georgia.
Key Highlights
- The world market for 3PL was between USD 360 – 370 mn in 2021 and is expected to grow at nearly 6 pct and 8 pct between 2021 – 2026, buoyed by robust growth in tractor production volumes in North America, India, and Europe, steady growth in China and Japan. A major driver of 3PL demand is tractors and the demand for 3PL is set to grow at a steady, healthy pace. Although India and China have a share of nearly 62 pct of the world tractor production, their share in global 3PL demand is only around 36 pct. North America, being one of the most mature tractor markets, contributes around 11 pct of the world tractor demand, and contributed almost 18 pct of the total demand for 3PL in the world in 2021.
- Uniparts India ltd is well positioned to benefit from increasing mechanization in the agriculture and CFM sectors, through leveraging their global business model, which allows them to efficiently serve OEMs across multiple global locations, contributing to their increasing efforts to rationalize their supply chain and asset/working capital management.
- Uniparts India ltd had an estimated 16.68 pct market share of the global 3PL market in FY22 in terms of value and an estimated 5.92 pct market share in the global PMP market in the CFM sector in FY22 in terms of value.
- Uniparts India ltd provides replacements of 3PL parts to organized aftermarket retailers and distributors in North America, Europe, South Africa, and Australia.
- In FY22, the Company’s customer base comprised over 125 customers in over 25 countries globally. Bobcat, TAFE, and Kramp are some of the customers with whom they have had relationships for over 15 years, while with customers like Yanmar, they have a relationship for over 10 years.
Valuation
Uniparts India Ltd. is a global manufacturer of engineered systems and solutions and is one of the leading suppliers of systems and components for the off-highway market in the agriculture and construction, forestry and mining, and aftermarket sectors on account of its presence across over 25 countries. Uniparts offers a niche play in these segments. At the upper end of the price band, the issue is quoting at a PE of 12.9x its annualized FY23 earnings. One can Subscribe for medium to long-term perspective.
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