ANG Industries: Investment Rationale- 2/2

In feb 2004, the stock was trading at 1.45rs levels. from may 2005 to may 2006, it had shot up from from 12rs levels to 414rs levels by May 2006, which is almost 285x returns a little over 3 years. ANG Industries scrip as such has a past track record of a proven wealth creator stock.
Since then, the stock has been declining, to reach a low of 26 rs in 2009.
A look at the results over a period of Mar 06 to Mar10 shows up interesting perspectives on why the stock used to command such premium valuations once, and later started getting heavily sold off. The recent recession years had certainly taken a heavy toll on its bottomlines, and toplines going stagnant.
The company also had earlier FCCB outstandings of 12mn USD. ( In the downturn, the company management availed of the opportunity to buy back its shares at a significant discount at 52.31 rs average, and also used the situation to fully buy back its 12mn$ FCCB outstandings, thus strenghtening its balance sheet by retiring the debts.

The company is now reaping the rewards of the strategic business shifts it has been undergoing during the downturn years it was struggling with, and is now poised to take advantage of its niche, vertically integrated business model. As a result of the various measures and growth oriented strategies that the management has been pursuing over the last two years, the company has now emerged as India's Largest Integrated Trailer and Trailer Assembly Manufacturer.
In fact , ANG claims to have pioneered the organised trailer manufacturing in India way back in 2007.

Post restructuring of the erstwhile ANG AUto,  ANG industries is now a diversified engineering and manufacturing company with interest in Heavy Structural Fabrication, Tractor Trailers, Specialised Containers and Automotive Components for Heavy Commercial Vehicles

It has 7 manufacturing and assembly units across northern India which are certified for quality and environmental standards with ISO 9001:2000, QS 9000, ISO 14001:2004 and ISO/TS 16949:2002 norms. ANG's customers include the who’s who of respective segments and are spread across countries in USA, Europe and Asia.

The Sitarganj plant in Uttarkhand is currently manufacturing trailers, containers, and doing general favrication and also executing the heavy metal fabrication jobs for BHEL.



The HCV Components division manufactures a range of Components & Assemblies  to international standards, such as:

Brake Pins & Rollers,Brake Shoe,Brake Assembly,Welded Axle,Mechanical Suspension,Air Brake Kits
Automatic Slack Adjuster,Brake S-Camshafts,Fully Dressed Dummy Axle,Manual Slack Adjuster,Landing Gear
&Transmission Components

Heavy Steel Fabrication Division

ANG AutoOur value chain in this business vertical spans the following:
   Structural Design and Engineering
   Off-site Fabrication
   On-site Fabrication and Erection
   Engineering Procurement and Design
   Our Primary Focus is on following segments :
With its long expertise in several core areas of the automotive sector, ANG Industries is well positioned to diversify and strengthen its presence across a long value chain. Our primary focus is on building facilities and delivery capabilities for the following segments:

    * Power plant structures
    * Boiler support structures
    * Prefabricated Building sectors

ANG currently fabricates 1,000 MT of steel per month, and has plans to augment capacity to over 3,500 MT (comprising star beam fabrication, general fabrication, containers and trailers).  machinery is soon being enhanced to supply 1,500 MT of I-beams per month for L&T Mitsubishi for supercritical boiler support structures.
- Already empanelled with BHEL as a preferred supplier of fabricated star beams.
Also supplies specialized containers to Adani Logistics and Arshiya International, and H-beams to L&T-Mitsubishi.
Strong engineering and design capabilities, and can offer turnkey solutions in E&C services and composite fabrication assignments.
Establishing partnerships with global leaders to gain entry into new business segments through enhanced technology.
Technical tie-ups and joint ventures are also being explored with specialized EPC players to bid for projects involving vertical high-rise structures and steel car parking structures.

Our value chain in this business vertical spans the following:

    * Structural design and engineering
    * Off-site fabrication
    * On-site fabrication and erection
    * Engineering procurement and design


Trailers & Containers Division
ANG Auto Ltd is India's Largest Integrated Trailer Manufacturer
   Nationwide Sales and Service Network
.    Service on call with pan India coverage
   Light-weight design to enable extra payload capacity
 Also supplies specialized containers to Adani Logistics and Arshiya International
We offer 15 variants including skeletal, flatbed, curtain-sider, Z-type, tip trailer, sideboard, tanker trailer, running gear, car carrier, refrigerated trailers, bulker trailers, etc.
ANG is the first trailer brand to offer a nationwide sales and service network, ensuring easy availability of original spare parts at several locations.


ANG Towerworx : TowerWorx – India is a Joint Venture between ANG Auto Limited Largest manufacturer of Trailers, Trailers Axles and its components, based in New Delhi, India and TowerWorx LLC a manufacturer of mobile towers based in Oklahoma, USA. This company has been formulated to deliver mobile communication towers with latest technology to India, the Middle East and Asia.

Facilities are centrally located within India and the United States with access to all of the major transportation facilities via truck, train and ship to ensure a timely delivery! Our combined facilities have over 18,000 square meters of manufacturing floor space, large enough to enable TowerWorx - India to deliver large quantity orders and support inventory for quick turn around delivery.

ANG Industries is committed to deliver quality products and back our products with a one year manufacture’s warranty. TowerWorx India also offers deployment services and short-term leasing of mobile towers

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chronological sequence of significant steps inititated by the management to return to its earlier growth trajectory:-
  ( As reported to bseindia.com)

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1. January, 4 2008
Subject:     

ANG Auto - Result of Postal Ballot

Announcement: 
   

ANG Auto Ltd has informed BSE that the shareholders of the Company have approved the following matters by way of Postal Ballot as a Special Resolution.

1. Alteration of Articles of Association of the Company by inserting the new clause of Buy-back of Shares or other specified Securities of the Company.

2. Buy-back of its own equity shares by the Company through open market purchases at a price not exceeding Rs 215 per Equity Shares upto 24.30% of the Paid up equity shares and free reserves.


2.January, 30 2008
Subject:     

ANG Auto - Hon'ble High Court of Delhi approve Scheme of Amalgamation

Announcement: 
   

ANG Auto Ltd has informed BSE that the Hon'ble High Court of Delhi, New Delhi has approved the Scheme of Amalgamation of ANG Auto Tech (P) Ltd with the Company.
   


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 3. 09 july 2008
 The Aggregate Paid up equity Share capital & Free Reserves of the Company as at March 31, 2007 was Rs 6636.03 lacs. At the Maximum Buyback Price of Rs 215 per Share & for the Buyback Size not exceeding Rs 1612.50 lacs, the maximum number of Shares that can be bought back would be 7,50,000 Shares, representing 6.62% of the outstanding fully paid up Equity Shares of the Company as on March 31, 2007. In the event of the average purchase price being lower than Maximum Buyback Price of Rs 215/-, the maximum number of Equity Shares that can be bought back (i.e 7,50,000 Equity Shares) would not stand altered, resulting in the Maximum Buyback Size of Rs 1612.50 lacs standing reduced proportionately.
The maximum amount required by the Company for the said Buyback aggregating to Rs 1612.50 lacs will be met out of the current reserves & surplus and/or cash balances and/or internal accruals of the Company.
  


 4. completion of buy back

The Buyback of Equity Shares of Target Company closed on December 22, 2008 on account of a total no. of Seven Lac Fifty Thousand Shares being bought back (the total number of shares intended to be bought back under the offer) upto the said date.

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  5.
 
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                       08 June 2009
Subject:     ANG Auto - Updates
Announcement:     ANG Auto Ltd has informed BSE that ANG Auto Ltd and TowerWorx USA have entered into a
Joint Venture to produce and market Mobile Towers solutions in India. ANG Auto Ltd and TowerWorx USA have a 50% stake in the new Company known as Towerworx India (P) Ltd.
                   09 September 2009
Subject:     ANG Auto - Updates
Announcement:     ANG Auto Ltd has informed BSE that the Company has taken a strategic initiative to add another vertical in power sector infrastructure space. The Company has set up a state of art a new line for fabrication for Power Plants fabricated boiler structure with an installed capacity of 25000 M Ton per annum.

The company has entered into yearly rate contract with BHEL for heavy duty steel fabricated boiler structure and the first order for 1100 M. Ton has been received against the rate contract.
                   15 October 2009
Subject:     ANG Auto - Outcome of Board Meeting
Announcement:     ANG Auto Ltd has informed BSE that the Board of Directors of the Company at its meeting held on October 15, 2009, inter alia, has considered and approved the Notice for passing the resolution to change the name of the Company through Postal Ballot.
Company:ANG Auto Ltd 

                       24 December 2009
Subject:     ANG Auto - FCCB Buyback
Announcement:     ANG Auto Ltd has informed BSE that the Company has repurchased Zero Coupon Foreign Currency Convertible Bonds (FCCB) worth USD 7.0 million of face value, listed on the Singapore Exchange Securities Trading Ltd., in accordance with the A.P. (DIR Series) Circular dated December 08, 2008 issued by the Reserve Bank of India. The cancellation and extinguishment of the same has been done as per the terms of the Offering Circular.
Scrip Code:530721   Company:ANG Auto Ltd 

                       18 February 2010
Subject:     ANG Auto - Board Meeting on Feb 25, 2010
Announcement:     ANG Auto Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on February 25, 2010, inter alia, to discuss and consider the matter of transfer of Sitarganj unit, to a 100% wholly owned subsidiary Company to ANG Auto Ltd.

Company:ANG Auto Ltd 

                       25 February 2010
Subject:     ANG Auto - Outcome of Board Meeting
Announcement:     ANG Auto Ltd has informed BSE that the Board of Directors of the Company at its meeting held on February 25, 2010, inter alia, has discussed and approved the following matter:-

1. Transfer of Sitarganj unit, to a 100% wholly owned subsidiary company of ANG Auto Ltd:- The Sitarganj plant in Uttrakhand is currently in manufacturing trailers, containers and doing general fabrication and also executing the heavy metal fabrication jobs for BHEL. All these are heavy fabrication jobs for the infrastructure sector and the company sees a lot of opportunities in infrastructure space especially in the power sector. Since the main area of operations of ANG Auto are Auto Components, which have very different manufacturing processes and market dynamics as compared to heavy metal fabrication, the management thinks it is in the best interests of the company to hive of the heavy fabrication plant into a wholly owned subsidiary. This will give it flexibility to build a new organisation Structure suited to the demands of project based work in the infrastructure space, and gives it the option of roping in a strategic technical/financial partners at a later stage to capitalise on the emerging opportunities in the infrastructure domain.

2. Notice for passing resolution through Postal Ballot for transfer of Sitarganj plant in Uttrakhand to a 100% wholly owned subsidiary of ANG Auto Ltd.


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                         29 April 2010
Subject:     ANG Auto - Change of Name of the Company
Announcement:     ANG Auto Ltd has informed BSE that the Registrar of Companies, NCT of Delhi & Haryana has approved the change of name of the Company from "ANG Auto Ltd" to "ANG Industries Ltd" vide their Fresh Certificate of Incorporation dated April 22, 2010 issued consequent to change of name of the Company.
Attachment     Click here for more details


                       30 April 2010
Subject:     ANG Auto - Receipt of Order
Announcement:     ANG Auto Ltd has informed BSE that the Company has received an Order of Rs. 33.37 crores from L & T MHI - Boilers Pvt. Ltd. for manufacture and supply of boiler support structure for Jai Prakash Power Venture Ltd. for their upcoming power plant at Nigrie, Dist. Singrauli, Madhya Pradesh. \

15.06.10 - 11 LAKH WARRANTS TO PROMOTERS(10.5 LAKH)+DIRECTORS(50K)

PRMOTERS STAKE TO GO UP TO 52.18, AT 48RS/WARRANT INC PREMIUM 10RS


                       01 July 2010
Subject:     ANGIND - Updates
Announcement:     ANG Industries Ltd has informed BSE that the Company has repaid all the liability of Foreign Currency Convertible Bonds (FCCB) worth USD 12 millions, issued on May 04, 2007.

The Company had repurchased Foreign Currency Convertible Bonds of face value of USD 7 millions in December, 2009 and has repaid the balance face value of USD 5 millions of FCCB on June 28, 2010, thereby extinguishing all the liabilities on account of FCCB of USD 12 millions.

RESULTS ANALYSIS

FY10 RESULTS:
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FY10 (cons)        : Toplines: 124.45 Cr, PAT 5.05Cr, EPS : 4.03
FY10  (standalone) : Toplines: 110.64 Cr, PAT 7.25Cr, EPS : 5.78


Q1FY11 RESULTS:
-----------------
Q1Fy11 :  Toplines: 40.23 Cr, PAT 3.53Cr, EPS : 2.81   (cons)- *Heavy steel fab: topline: 8.85 cr, pat: 1.51cr.
Annualized EPS: 11.25

Q1Fy11 :  Toplines: 38.92 Cr, PAT 2.61Cr, EPS : 2.08 (standalone) [Annualized EPS: 8.33]
v/s q1fy10 : Toplines 16.13cr, pat: -1.99cr. eps -ve.    ( no consolidated income)



Q2FY11 RESULTS:
-----------------
Q2Fy11 ( cons) : Toplines: 39.85 Cr, PAT 2.45Cr, EPS : 1.95     (cons)- *Heavy steel fab: topline: 8.6 cr, pat: 1.59cr.
( for q2 fy 10, there was no separate consolidated reporting. Annualized EPS :  7.8

v/s q2 fy10 : topline : 24.92 cr, PAT : 1.37cr
Q2FY11 (standalone) : 38.65cr, PAT: 1.73cr, 1.38 standalone q2 fy11 eps. Annualized EPS: 5.51





H1FY11 V/S H1FY10 :-

For H1FY11, the turnover was at 80.08 cr, v/s 41.04 cr for H1FY10, registering a   95% increase.
For H1FY11, the PAT was at 5.98 cr, v/s -0.62 cr for H1FY10, registering a   10.64x  increase.

 H1FY11 EPS at 4.77 rs share capital : 1.254 cr fv 10 shares.  Annualized EPS : 9.54

  ie, 9.54 EPS for fy11e.
 At 11.5x FY11e PE, the target price for FY11e works out to 109rs on the higher side, and at a conservative PE of 9, we arrive at lower price target of 90.63 based on annualized H1FY11 results.
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Outlook for fy12:
As trailer manufacturing, containers manufacturing, and heavy steel fabrication works gain traction, the management has given revenue projection of 50% growth in toplines for FY12.
Further, the towerworx JV as it gains traction could lead to better topline and bottomline earnings. For the present however, these have not been taken into account for revenue projections.
          7.46% NPM for q1fy11.
   Assuming 40% growth in topline for fy12, we see ANG industries capable of gorwing its topline to around 173 cr for fy12, and bottomline of 12.95 cr at 7.46% OPM , EPS projection for fy12e comes to 10.3,
this leads to an FY12e target price of   103 at a conservative PE estimate of 10, which could be achieved over a timeframe of 18 months.
Any significant upsides in toplines and bottomlines could lead to a significant rerating in the stock, as the company has a significant first mover advantage in the trailer chassis manufacturing segment, and is a premier supplier to reputed container logistics companies like adani ports, arshiya logistics etc.

Conclusion:
As such, one can hold on to the stock of ANG industries for a target price of 103+ over 18-24M perspective.
At the present market cap of 55cr, the scrip is trading at very cheap prices. It's debt-free position, and free standing reserves and assets imply limited downsides, at cmp of 44.35rs , and as such is a true value pick at these levels.
In view of present market conditions, one can add ANG industries to the portfolio, and further increase positions at around 42.5 levels, where it has long term support. Any price below this is only a value add.

The company follows good corporate disclosure policies as well, as can be seen from its disclosures to the exchanges as well as its informative annual reports.

ANG Industries : Positioned to capitalize on the shift in Road transportation- from Trucks to Trailers

About us

ANG INdustries Ltd.

Annual Report 2010 

http://www.angindustries.com/pdfs/ANG%20AR_9_10.pdf

We are a diversified engineering and manufacturing company with interest in Heavy Structural Fabrication, Tractor Trailers, Specialised Containers and Automotive Components for Heavy Commercial Vehicles. We have been serving the key infrastructure sectors of power, construction and surface transport - roadways and railways. Listed on two leading stock exchanges of India, we have been creating and delivering value to our shareholders.
Our 7 manufacturing and assembly units across northern India are certified for quality and environmental standards with ISO 9001:2000, QS 9000, ISO 14001:2004 and ISO/TS 16949:2002 norms. Our customers include the who’s who of respective segments and are spread across countries in USA, Europe and Asia.

Products:

 

I. HCV Components Division

We offer a wide range of components designed to give greater safety and durability.

Specialization : Our competence lies in the forging,CNC-machining,assembly   and heat treatment.   Scale : We are amongst the largest components manufacturers in India.   Wide Customer Base : We are Tier I and Tier II with over companies in the USA,   Europe,Africa and the Middle East Asia.   Responsiveness : Our responsiveness to new product / application   development, timely delivery, cost optimization and quality optimization is   second to none.

Components & Assemblies
--------------------------
Brake Pins & Rollers
Brake Shoe
Brake Assembly
Welded Axle
Mechanical Suspension
Air Brake Kits
Automatic Slack Adjuster
Brake S-Camshafts
Fully Dressed Dummy Axle
Manual Slack Adjuster
Landing Gear
Transmission Components

Brake Assembly Features & Benefits   Machined S-Cam Head Superior Grade OEM Brake Lining Heavy Duty Shot Peened Return Spring Anchor Pins & Rollers made from OEM Standard Steel, case carborized as per OEM standards. Improved Cam-Shaft busing material Easy and Quick change shoes Fitted with OEM approved Slack Adjusters SG Iron Brake Spider. Readily available replacement parts.

Welded Axle Features & Benefits   Spindles are welded to Beam by using Friction Welding Technology Absolute Homogeneous Welding of Spindle without any Induslon unlike the Conventional Weld used by Competition Low Inherent Weight of the Axle Beam Combined with High faybad Capacity Forged, Quenched & Tempered Spindles with Induction Hardened Bearings Journals for Optimize Wears and fatigue Axle Beam fs Adapted to Maximize Tyre Life and Reduce Wear Long Lasting Anti Corrosive Paint Application Completely Interchangeable with Indian OEM Easily Available of Spares Thorughout Indfa Badted by Countrywide/Service Network Hardened Brake Shoes webs for Effective Braking Unit Mounted S CAM Brake for High Efficiency `

Mechanical Suspension Features & Benefits   Static Axle Load Equalisation using Equalising Bracket Taper Bushing or Greaseable Powdered Metal Bushing Simple Maintenance Reliable Proven Design Catered for Extended Service life Flexible Link Rod for Proper Alignment to help reduce Tyre Wear Low Chamfer on Springs for Smoother Ride Delivered Ready To Fit ` Capacity Model : 86.1 Single Suspension @ 13 ton 86.1 Tandem Suspension @ 26 ton 86.3 Trl Suspension @ 39 ton 86.4 Quad Suspension @ 52 ton

Air Brake Kits Features & Benefits   Made from OEM Standard Steel, heat treated as per OEM specifications Ensures more life of the components and higher durability. Corrosion-resident coating which meet OEM standards (zinc plated or phosphating option available) Helps in preventing flaking of coating resulting in larger components life & prevents rust formation. Made of high grade 304 Stainless Steel for corrosion resistance (CR Steel as a low cost option also available) Ensure proper Anchor Pin performance and longer bushing life. Shot Peened Springs for higher durability and fatigue life Ensures a longer life and proper operation of the spring & extra fatigue life. Retainers are from oil-tempered Spring wire Prevents sagging of the wire and guarantees assured resilience. Made from high strength Spring Steel Ensures high fatigue life for the Pin Brake Shoe. ANG Auto Kits offer an OEM quality replacement for fleets distributors requiring a standard quality kit for on- highway conditions.

Brake Pins & Rollers Features & Benefits   OEM's Graded Steel. ANG uses OEM's Grade & approved Steel which increase performance of Anchor Pins & Rollers. OEM spec. Heat Treatment (Case Carborised Components) The process gives nigher strength & fatigue life on the components. Precision CNC turned Pins & Roller Ensures close tolerance and concentricity of the Pins as per OEM Standards. Zinc Plated/Phosphated as per OEM Spec Salt spray life ensured on the components.

Brake Shoes Features & Benefits   Hardened Web Ends. The web ends of ANG Automotive Brake Shoes are induction hardened to prevent from wear. Precision Coined Shoe Table's Provides a solid foundation to help prevent cracking of the Brake Lining and improves performance. Automatic Robotic Welding The welds hold the Webs and Shoe table together, providing strength at this critical connection ensuring high life of the shoe.. II. Heavy Steel Fabrication Division Our value chain in this business vertical spans the following:    Structural Design and Engineering    Off-site Fabrication    On-site Fabrication and Erection    Engineering Procurement and Design    Our Primary Focus is on following segments : Heavy Steel Fabrication   India’s rapid economic surge is riding on its infrastructure sector, which has of late been growing in leaps and bounds. The spate of PPP projects that are coming up all over the country is an indicator of the increasing prominence being accorded to infrastructure development. With its long expertise in several core areas of the automotive sector, ANG Industries is well positioned to diversify and strengthen its presence across a long value chain. Our primary focus is on building facilities and delivery capabilities for the following segments: Power plant structures Boiler support structures Prefabricated Building sectors We currently fabricate 1,000 MT of steel per month, and have plans to augment capacity to over 3,500 MT (comprising star beam fabrication, general fabrication, containers and trailers). Our machinery is soon being enhanced to supply 1,500 MT of I-beams per month for L&T Mitsubishi for supercritical boiler support structures. We are already empanelled with BHEL as a preferred supplier of fabricated star beams. We also supply specialized containers to Adani Logistics and Arshiya International, and H-beams to L&T-Mitsubishi. We have strong engineering and design capabilities, and can offer turnkey solutions in E&C services and composite fabrication assignments. We are establishing partnerships with global leaders to gain entry into new business segments through enhanced technology. Technical tie-ups and joint ventures are also being explored with specialized EPC players to bid for projects involving vertical high-rise structures and steel car parking structures. Our value chain in this business vertical spans the following: Structural design and engineering Off-site fabrication On-site fabrication and erection Engineering procurement and design      III. Trailers & Containers Division India's Largest Integrated Trailer Manufacturer    Nationwide Sales and Service Network .    Service on call with pan India coverage    Light-weight design to enable extra payload capacity   " ANG is India's Largest Integrated Trailer and Trailer Assembly Manufacturer"    We pioneered the organised trailer manufacturing in India way back in 2007. ‘ANG Trailer’ became the most preferred brand in no time and also the fastest one to roll out 1000 trailers on Indian roads. Since then, Indian trailer buyers witnessed our numerous value additions and customisation in response to their specific needs. We offer 15 variants including skeletal, flatbed, curtain-sider, Z-type, tip trailer, sideboard, tanker trailer, running gear, car carrier, refrigerated trailers, bulker trailers, etc. Made of high-quality steel, our trailers conform to international CMVR standards. They are fitted with our own world-class undercarriage assemblies such as axles, suspension systems, brake assemblies and landing gears. Being safety-focussed, every trailer is fitted with cattle guards, reflectors, indicators and brake-lights. We are the first trailer brand to offer a nationwide sales and service network, ensuring easy availability of original spare parts at several locations. With our fast-expanding distribution and service points, coupled with our wide-ranging product portfolio, we are setting truly international benchmarks in the Indian trailer segment. IV.Mobile Towers Division Your Trusted Source for Mobile Towers and Turn-key Integration    Mobile towers are the most cost effective way to deploy a wireless structure    Support a way array of Equipment to ensure your network is operational.    Single Carrier Series    Multi Carrier Series

ANG Towerworx : TowerWorx – India is a Joint Venture between ANG Auto Limited Largest manufacturer of Trailers, Trailers Axles and its components, based in New Delhi, India and TowerWorx LLC a manufacturer of mobile towers based in Oklahoma, USA. This company has been formulated to deliver mobile communication towers with latest technology to India, the Middle East and Asia.

Collectively both organizations bring over 50+ years of manufacturing and engineering experience to the global market for mobile towers. Our diverse technical backgrounds enable TowerWorx - India to deliver customized and standard integrated mobile tower solutions to meet the diverse telecom market requirements for our global customers.

Our facilities are centrally located within India and the United States with access to all of the major transportation facilities via truck, train and ship to ensure a timely delivery! Our combined facilities have over 18,000 square meters of manufacturing floor space, large enough to enable TowerWorx - India to deliver large quantity orders and support inventory for quick turn around delivery.

We are committed to deliver quality products and back our products with a one year manufacture’s warranty. TowerWorx India also offers deployment services and short-term leasing of mobile towers

Manufacturing Facilities

Having begun with a single plant in 1991, ANG Industries’s manufacturing capabilities have grown to 6 state-of-the-art manufacturing facilities spread over 900000 sq. ft. area. Deploying the world class machinery and processes, these units are strategically located in the national capital region of Delhi and Uttarakhand.

Sitarganj (Uttarakhand).
ISO 9001:2000 certified.
Installed Capacity: Trailers (3,600 pa), welded structures / columns (30,000 tons pa)

This plant is amongst India’s largest and most modern heavy fabrication and trailer manufacturing facilities. It has six bays of 150m X 20m; 10 overhead gantry cranes; a fully automated H-beam line; plasma cutting machines; submerged arc-welding & 360 0-rotation turntable; seven-nozzle flame-cutting machine with a 16m X 3m bed; a beam-assembling machine; an H-beam hydraulic straightening machine; 180 0 hydraulic turning machines; a face milling machine; a radial drilling machine; EOT cranes; a CNC gantry drilling machine; a shot blasting chamber; a paint booth press shop.

Other Plants

Noida
ISO 9001:2000 certified
Manufactures anchor pin rollers and spindles for RV vehicles.

Greater Noida
ISO 14001:2004 and TS16949 certified.
Manufactures worm gear sets and cylinder blocks
SEZ, Noida
ISO 9001:2000 certified.
Manufactures automatic and manual slack adjusters
Faridabad
ISO 9001:2000 and TS16949 certified.
Manufactures differential spiders.

SEZ NoidaTS16949 certified
Manufactures machined components such as worm gear sets, differential pins, bodies for automatic slack adjusters.

INDIA’S ANG AUTO LIMITED REPRESENTS A DEPENDABLE COMPONENT OUTSOURCING POINT FOR AUTO MAJORS ACROSS THE WORLD.

• Specialised: Our competence lies in the forged, CNC-machined, assembly and heat treatment of automotive components for specialized applications.
  
• Scale: We are one of the largest manufacturers in India of these components used in the manufacture of trailer axles, transmission and air-brake systems.
  
• Competitive: More than 55 per cent of our revenue is derived from exports to quality conscious US and European markets in addition to Australia, Brazil and Mexico, among others.
  
• Customers: Our brand-enhancing customers comprise Tier-I and Tier-II companies across the world like Arvin Meritor (USA), Alliance Corporation (USA), Zenus Starker – BMW (USA) and Bosch Rexroth (UK), among others.
  
• Responsive: Our sampling and prototype development is one of the quickest, helping enhance customer competitiveness in the shortest time
  
• Operational flexibility: Our manufacturing presence across five facilities covers nearly 250,000 sq. ft. across NOIDA and Faridabad,Sitarganj, Uttranchal (both adjacent to New Delhi, India’s capital).
  
• Visible: Our shares are listed on the Mumbai Stock Exchange;Delhi Stock Exchange, National Stock Exchange, Ahemdabad Stock Exchange, our promoters hold close to 45.86 per cent of our equity.
  
  
  

  Vision

  “To be Global leaders in manufacturing of automotive components, assemblies and complete transport solutions by giving cost competitive quality products to the customers.”
  

  Mission

  “ANG’s mission is to provide superior products for the automotive segment and increase its market share through quality, innovation in manufacturing and cost efficiency.”
  
  

  Philosophy and Strategy

  OUR STRATEGIC DIRECTION IS DERIVED FROM OUR 15-YEARS EXPERIENCE IN WORKING WITH GLOBAL BRAND ENHANCING PARTNERS.

  Philosophy

  As a manufacturing company in the automobile industry we stand for a systematic quality management and an open information policy, paying attention to and fulfilling the wishes and needs of our customers.
  Our aim is to continuously increase our company's competitiveness. We want to be a reliable and flexible partner for our customers. Therefore, all employees, whether in the manufacturing sector or in other sectors of the company are trained to meet all quality standards of our company in their scopes of duties.
  In order for us to meet these requirements, we built up an extensive quality management system. It fulfils the requirements of the international norm ISO 9001:2000 and the requirements of ISO/TS 16949:2002 and is integrated and in use company wide.
  We are an organisation inspired by enterprise, fuelled by dynamism and distinguished by service. As a automotive components manufacturer to some of the best known brands Globally & in Domestic Market, we aim for complete customer satisfaction through quality, reliability and time-bound performance. As a dynamic, well-integrated company, we believe in keeping one step ahead of the times.
  

  Strategy

• Create a de-risked business model through a combination of scale and product variety
  
• Product variety to be widened through continuous improvement & innovation
  
• This innovation to reflect in cost reduction and an increasing production of value-added products
  
• Both these initiatives to reflect in enhanced margins and profits
  
• The profits to be aggressively reinvested in scale and product variety leading to sustainable growth
• 
  

  Competitive edge

  WHERE WE SCORE OVER OTHER PLAYERS IN THE INDIAN AUTO COMPONENTS SECTOR

  At ANG Auto, our competitive edge is derived from the following:

• Values: The highest ethical and professional standards
  
• Knowledge: Most specialized product insight within the niche; ability to absorb manufacturing technologies with speed; ability to absorb customer standards for general benefit; motivated team of around 50
  
• Mind-to-market: Short tenure makes it possible for business partners to seize the first-mover supply advantage
  
• Reference: Collaborative working with some of the largest names across a decade
  
• Scale: Globally benchmarked operational capacity; higher than competition
  
• Quality / efficiency: Derived from cutting-edge technology, training and progressive shopfloor practices
  
• Logistics: Timely product delivery to the customer’s shopfloor ensuring an uninterrupted operation at all times
  
• Balance sheet: Very Low debt and rising cash flow every quarter

Our history

OUR BUSINESS CONSOLIDATION WAS UNDERTAKEN TO TRANSFORM US INTO ONE OF INDIA’S FASTEST GROWING AUTO COMPONENT MANUFACTURERS

Growth of the ANG group over the last decade

• ANG Exports (erstwhile flagship company) was engaged only in the manufacture of air-brake components.
  
• Widened the product portfolio through privately held group companies (unlisted) like ANG Auto Pvt. Ltd. and ANG Automotive Industries Pvt. Ltd.
  
• In 2005, the ANG management consolidated  these group companies to create ANG Auto Limited.
  
• This consolidation is expected to accelerate growth and enhance stakeholder confidence
  
• The consolidated company expects to strengthen its position as the leading multi-product manufacturer-exporter of automobile components to developed country OEMs.

  ANG Auto : Growth Milestones :   http://www.angauto.com/milestones.htm  

 FY02 to FY02 Results Highlights:     http://www.angauto.com/5yearhighlights.htm

INFRASTRUCTURE

Infrastructure

OUR FOCUS ON ACHIEVING LEADERSHIP HAS HELPED US TO CREATE THE LARGEST CAPACITIES IN THE INDIAN INDUSTRY.

Facilities

We have grown from one plant in 1991 to five (250,000 square ft.) in proximity to India’s leading automobile hub.

Noida: Original plant

Greater Noida: Enjoys the coveted TS16949 certification

SEZ, Noida: Dedicated to the assembly of automatic slack adjusters

Nalagarh (H.P.): Commissioned to manufacture fully dressed single piece dummy axles and trailer suspension systems

Faridabad: Commissioned to manufacture spiders

Sixth facility: Proposed facility in NOIDA SEZ to manufacture machined components.

Seventh facility: Commissioned to manufacture Trailers Project located at Sitarganj, Uttranchal.

Equipment

Our equipment selection has been prudently made around the following considerations:

Flexibility: Versatile enough to manufacture the entire family within a specified product.

Volume driven: Scaled appropriately to emerge among the top two manufacturers of every product segment of our presence in India.

Sustainable: Selected to protect us from technology obsolescence.

State-of-the-art: Best-in-class, helping us manufacture complex products. Comprises CNC machining centers, vertical machining centers, gear hobbing machines, facing and centering machines, cylindrical grinding machines, centerless grinders, milling machines, worm thread rolling machines, spline rolling machines, drilling machines, band saws and horizontal and vertical broaching machines. Invested in in-house heat treatment (induction hardening, gas garborising, salt baths with carborising, hardening, austempering and normalizing facility). 

Alliance

THE MANUFACTURER OF TECHNOLOGICALLY SUPERIOR PRODUCTS REPRESENTS OUR PRINCIPAL COMPETITIVE EDGE

Collaboration with TowerWorx LLC, Largest Mobile Tower Manufacturer,USA

• TowerWorx - India is a Joint venture between ANG Auto and TowerWorx , formulated to deliver mobile communication towers with latest technology.
  
• Alliance will enable us to meet the diverse telecom market requirements for our global customers.
  
• Agreement enables us to market these Mobile Towers to India, the Middle East and Asia.
  
• Proposed to provide COW on Lease Rentals in the near future.

Quality

OUR QUALITY OBSESSION HAS EVOLVED US INTO A PREFERRED SUPPLIER FOR TIER-1 AND TIER-2 OEMs IN USA AND EUROPE.

Our quality policy: “We, at ANG Group strive to manufacture and deliver quality automotive components and assemblies related to air brake, axels and transmissions efficiently in a professional, flexible and safe working environment on time and at the right cost to our customers, while driving to become a world-class organization by continual improvements of the process through established quality management systems and quality objectives by the following:

C- Customer Satisfaction

A -Alignment of our Missions, Goals &

R -Responsibility and Respect for our job and each other

E -Educating one another”

Quality objectives

• Continuous improvement in productivity and cost reduction through improved processes
  
• ZERO defect culture reflected in minimized rejection / rework by producing the right quality at the first time
  
• Continuously upgraded technology
  
• Total employee involvement

Quality process

• Institutionalized a number of international processes and practices
  
• Commitment to analyse each operation at the drawing board even before the commencement of manufacture
  
• Use of techniques like the Failure Mode and Effect Analysis, 8-D Mechanics, Pareto Analysis and the Fish Bone Technique for in-process improvement

Plant location	Quality certifications	Issuing authority	Year of receipt
NOIDA	Already Sent
Greater NOIDA	Already Sent
NOIDA (SEZ)	Already Sent
Faridabad	Already Sent
Nalagarh	Already Sent

Customer service

ANG AUTO IS POSITIONING ITSELF AS A BUSINESS PARTNER THAT IS AN INTEGRAL PART OF THE BUSINESS PLAN OF ITS CUSTOMER.

ANG enjoys the reputation of being a preferred outsourcing partner for automobile OEMs world over for the following reasons:

• A longstanding business relationship with demanding international automobile clients
  
• An unambiguous understanding of client requirements
  
• Among the shortest product development cycles (2 weeks against the industry benchmark of 6 weeks)
  
• Adherence to commitments without a single delay for the last 5 years
  
• One of the most competitive cost structures in the industry

The ANG customer-relationship model

HOW ANG AUTO HAS EMERGED A COMPANY CUSTOMERS CAN TRUST

• Provides samples and a detailed process document to the client for approval
  
• Invests in state-of-the-technology for enhanced speed and efficiency
  
• Delivers a zero-PPM quality at the client site through internationally accepted processes
  
• Associated with one of the largest US warehousing chains to deliver products ‘just-in-time’ to customer assembly lines
  
• Appoints local agents to interact with our global clients
  
• Periodically visits client premises to strengthen customer relationships
  
• Periodically invites clients for plant and process audits
  
• Expand capacity and improves process leading to its own and client’s competitiveness 
  
  

  Products: http://www.angauto.com/product.htm ANG’S PRODUCT PORTFOLIO ACCOUNTS FOR A LITTLE LESS THAN A THIRD OF THE INDUSTRY’S PRODUCT BASKET . ANG Auto is engaged in the manufacture and / or export of the following automobile components... Fully dressed dummy axles Suspension systems Landing gear Automatic and manual Slack Adjusters Brake assemblies and components Spiders Worm and gear sets Other products include S-cam shafts and CNC machined components We are one of the largest manufacturer and exporter of these products in Southeast Asia Fully dressed dummy axles Pioneers in introducing the product into India. Our axles are made of high strength alloy steel seamless tube compared to current conventional axle; have no joints as against the welding done in the conventional axles. We are the only manufacturer to offer a lifetime warranty for our axle beam. Customised the imported technology to Indian conditions and Telco and Ashok Leyland applications. Offer multiple track lengths as against standard track lengths offered by other companies to cater to a larger section of the commercial vehicles’ sector. Suspension systems Marketed under the ANG-Fuwa brand Technology from Fuwa, China Logical extension of product vertical towards trailer assembly Planning to manufacture at our Sitarganj Plant in Uttranchal. Heavier and stronger compared to available Suspensions at the market place. Use of OEM standard high strength steel Landing gear Marketed under the ANG-Fuwa brand Being manufactured later when the volume picks up Maintenance free Wider Cross Section to take Extra Load. Adheres to international quality benchmarks namely TTMA, AAR and German safety regulations for commercial vehicles Maintenance free feature with grease packed jack screw Slack adjusters Slack adjusters will drive growth at ANG over the foreseeable future. The company manufactures manual and automatic slack adjusters; the latter is largely exported. By October 2006, Indian commercial vehicles will have to mandatorily utilize automatic slack adjusters, creating a potential three-fold increase in demand to 1,20,000 pieces per month. Developed an indigenous version of the automatic slack adjuster in contrast to the commonly used Clearance Sensing Principle practiced by competitors, enhancing product life. Filed for a US patent for our product. In addition, our automatic slack adjusters have been tested and validated by Greening Labs in the US, as per SAE 1462 and SAE 1512, which is an NHSTA approved lab We are expanding our existing production capacity by about 50%, expected to be operational by October 2006. Brake assemblies Marketed under the ANG brand Manufacturing in peak volume will be 2,50,000 per annum. Manufactured in two formats to suit the Tata and Ashok Leyland vehicles Features include machined S-Cam head, superior grade brake lining Fitted with OEM approved slack adjusters Critical components fitted namely the anchor pin and roller made from OEM standard steel and manufactured as per international standards Brake Shoe Web ends of the brake shoes are induction hardened to reduce wear and tear, improving the product life Weld holds the webs and shoe table together, providing strength at this critical connection ensuring high life of the shoe. Provides a solid foundation to help prevent cracking of the brake lining, improving performance Brake components We are a prominent manufacturer of air brake components (anchor pins, rollers and axle spindles) in India. These products require accuracy and are critical to the brake assembly process perfection. Spiders Largest manufacturer of this product in India and among the few to manufacture the entire range of products within this family of auto components. Critical cross-section that connects the rim of the wheel to the vehicle. Worm and gear sets Leading manufacturer of worm and gear sets used in automatic stack adjusters. Represents the heart of the automatic slack adjuster; requires a special grade of steel. Products marketed to OEMs in developed economies. Scam Shaft Machined Cam Heads Ensures greater accuracy as compared to the forged unit. Induction Hardened 'S' Heads ensures longer life and higher fatigue life of the CAM Shaft. CNC Precision Turned & Ground Journals Ensure close tolerance diameter and shaft concentricity. Shaft Splines-Rolled/Hobbed & Induction Hardened Machined/hobbed Shaft Splines; induction hardened for added strength and durability which prevent accelerated wear and premature failure. OEM grade steel used as per SAE, DIN, JIS Standards Prolonged life of the S-cam & high fatigue life. Moving up Value chain ANG AUTO IS PROACTIVELY POSITIONED TO CAPITALISE ON THE SHIFT IN ROAD TRANSPORTATION – FROM TRUCKS TO TRAILERS. Enhancing value We are climbing the value chain from components to sub-assemblies to assemblies in two critical auto-component families with the objective to achieve a first mover’s advantage when road transportation evolves from trucks to trailers.    http://www.angauto.com/movingupvaluechain.htm strategy ANG AUTO HAS DARED TO REVERSE ITS INDUSTRY PRACTICE - BY FIRST ESTABLISHING CREDIBILITY IN THE INTERNATIONAL MARKETS FOLLOWED BY A GROWING PRESENCE WITHIN INDIA. Since inception, ANG Auto has focused on the global markets with the following advantage: Technology: Enabled us to absorb international technologies ahead of competition Best practices: Enabled us to adopt global best practices across manufacturing, quality and customer service. Established outsourcing model: Enabled us to strengthen our global delivery model leading to an established reputation. Stronger positioning: Our developed market experience prepares us better when similar market conditions emerge in India, resulting in a first-mover’s advantage. clients MORE THAN 90% OF ANG’S REVENUE IS DERIVED FROM EXPORTS TO DEVELOPED ECONOMIES. Our products are marketed primarily to major OEM manufacturers in the USA and Europe. Some of our clients include: Arvin Meritor: US$ 8 bn global auto component vendor to car majors in US, Italy, Sweden and Mexico. American Axle:USA AAM is a world leader in the design, engineering, testing, validation and manufacturing of driveline, drivetrain and chassis systems, related components, and metal formed products for light trucks and buses, sport utility vehicles, crossover vehicles, and passenger cars. Axle Alliance Corp., USA: Wholly owned subsidiary of Daimler Chrysler engaged in the business of supplying axle systems for commercial trucks in US Dexter Axle, USA: Axle industry leader and premier supplier of running gear and components to the trailer industry, with eight manufacturing facilities, international distribution network and over 1700 employees Mack Trucks (Arvin Meritor), USA: Founded in 1900, Mack Trucks, Inc. is one of North America's largest producers of heavy-duty trucks. MACK ?trucks are sold and serviced in more than 45 countries through a worldwide network of more than 670 sales, parts and service centers. As a Volvo Group company, Mack is committed to the core values of safety, quality and care for the environment. Mack is the primary sponsor of the American Trucking Associations’ “Share The Road” national safety education initiative. All Mack manufacturingand development locations are certified under ISO 14001, the international standard for environmental management. Bosch Rexroth Limited, UK: Wholly owned subsidiary of Bosch Rexroth AG, possessing a unique range of technologies required for driving, controlling and moving. Eaton Automotives,POLAND : Eaton is a global technology leader in electrical components and systems for power quality, distribution and control; hydraulics components, systems and services for industrial and mobile equipment; aerospace fuel, hydraulics and pneumatic systems for commercial and military use; and truck and automotive drivetrain and powertrain systems for performance, fuel economy and safety. Triangle Suspension System Inc., USA: Synonymous with steel leaf springs, a premier aftermarket supplier of steel and air springs and suspension components to the aftermarkets in medium and heavy commercial vehicles. Dayton Parts LLC: Dayton Parts, LLC is the most comprehensive manufacturer and distributor of undercarriage replacement products for the heavy-duty aftermarket in the United States. Tata Motora Limited, India: India's largest automobile company, and the leader in commercial vehicles in each segment, and among the top three in passenger vehicles with winning products in the compact, midsize car and utility vehicle segments. The company is the world's fourth largest truck manufacturer, and the world's second largest bus manufacturer. Arshiya International Ltd., India: A flagship company of the Arshiya Group. The company has multinational operations in the logistics and supply chain management space. Linfox Logistics, Australia: supply chain solutions throughout the Asia Pacific region. Ashok Leyland, India: Technology leader in India's commercial vehicle industry for over five decades. Its buses carry more people than the entire Indian rail network (the second largest in the world). Annual reports 2004-2009 http://www.angauto.com/annulreports.htm http://www.angindustries.com/annualreports.htm