Gg Automotive Gears Ltd Dewas

[Nickie Koskinen]

GG. AUTOMOTIVE GEARS LIMITED is engaged in the business of design, manufacture, supply and servicing of Gears and Pinions &Gear boxes. The company was established in 1974 and is based in Dewas, Madhya Pradesh. G G Automotive Gears Limited is a market leader in traction gear business because of its unmatched cost, quality and delivery standards.

G. G. AUTOMOTIVE GEARS LIMITED has the capacity to manufacture gears ranging from 1 to 35 modules, 100 mm to 1500 mm in OD up to DIN 4 in quality, and forged components from 10-100 kg in finished weight. Currently, the gear division can produce up to 500 large gearwheels and 1500 pinions & shafts monthly while the forging division can produce up to 500 MT of forgings monthly.

The global automotive gear market is expected to grow at a considerable rate for the next few years, primarily on the account of growing automotive industry. The growth in automotive industry is an outcome of the increased production of passenger vehicles in the recent years. Moreover, increasing installation of automated and mechanized parts in automobiles, advancements in technology, demand for smooth gear shifts and enhanced acceleration are driving growth of the automotive gear industry. Asia Pacific is projected to have the largest market for automotive gears, with India and China being the leader in the industry.

The automotive gears industry in FY 2020 has been largely static. The market for Gear is trending towards higher sizes due to larger capacities being planned by the various users. Accompanying these trends is the scaleup in capital equipment sizes, newer technologies, energy efficiency and spacereduction are emerging askey drivers in the Gear industry. India, in recent years,has witnessed a considerable growth in the planetary Gearsegment signalling a maturing of themarket.Recently, the outlook for auto component industry has changed from Negative to Stable backed by increase in demand across Original Equipment manufacturers, replacements and exports.

Due to COVID 19 pandemic and nationwide lockdown, the industry faced hard times because of initial disturbances in supply chain management, and aggregate demand reaching normal levels. There was downward entiment overall. However, G G Automotive Gears Limited with strong market presence in the Indian railways and with lucrative opportunities opening up in the global railway market can perform much better than any other automotive gear manufacturer. Additionally, G G Automotive Gears Limited foray into diversified markets such as earth moving equipment, mining, steel andindustrial applications should help the company insulate from negative business cycle effects as a result of the pandemic. The company aims to maintain its dominant position in the Indian Railways and explore newer markets globally.

About the Company

(i) G.G. Automotive Gears Ltd. is a leading manufacturer of traction gears and pinions, based out of Dewas, Madhya Pradesh in India. Let us learn what is tractions gears and pinions to get a clear insight into the business of G.G. Automotive Gears Ltd. " The pinion is the only thing with the help of which power is transferred from engine to wheel. It is situated inside the traction motor of the engine. The material of the pinion is cast iron. The gear of pinion is mounted on the gear of the axle of the wheel. When power comes from the engine to the traction motor, this rotates the pinion on its axis which rotates the axle gear. This, in turn, rotates the wheel. Hence the engine moves forward"

(ii) G.G. Automotive Gears Ltd has been a market leader in Locomotive gears for the last 40 years. Established in 1974, the company undertakes to manufacture of traction gears as a strategic shift from its traditional business of automotive gears.

Listing of Shares

i) The Equity Shares of the Company are listed on the BSE Limited, Mumbai. However, the trading of shares has been suspended by BSE due to non-compliance.

ii) The Company received Listing Approval for 10,77,267 Bonus Equity Shares kept in abeyance dated 23rd May 2018 and subsequently Trading approval dated 26th September 2018 from Bombay Stock Exchange for trading said 10,77,267. The said shares also listed at Bombay Stock Exchange w.e.f. 27th September 2018.

iii) Further, the company has already in progress to obtaining in-principle approval from Bombay Stock Exchange for Revocation of Company.

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