Shanthi Gears Ltd

Shanthi Gears Ltd (374 to 485)

Recommended on: 16-April-2023
Recommended Price: 374
Today’s High: 485
Till Date Return: 29.68%
Date: 15-June-2023

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Company History

Shanthi Gears Ltd. (SGL) is a Coimbatore-based gear manufacturing company that was founded by P Subramanian, an entrepreneurial engineer, in 1969 as a partnership concern. In July 1972, the partnership firm was converted into a private limited company, and in March 1986, it became a public limited company. SGL started as a maker of gears for textile machinery but has since expanded its product range to include gears for industries as wide as process, power steel, cement, sugar, and aviation. Today, the company produces gears for simple applications such as hand-driven jacks to high-tech gears for supersonic jet aircraft.

Expansion and Diversification

SGL opened its first factory in 1972 and a decade later expanded its product range by starting to manufacture worm gearboxes. In the mid-80s, SGL took the next step and began manufacturing helical and bevel helical gears. The company also started producing geared motors simultaneously in this period. In 1986, it completed the project of putting up its own foundry. The foundry caters to the needs of grey iron and spheroid graphite castings, as well as non-ferrous ones such as phosphor bronze, aluminum, etc. As a part of backward integration, a forging plant was also commissioned simultaneously. The company is getting 50% of its business from executing special orders, i.e., custom-made gears.

Strong Parentage Being Part of Murugappa Group

The company that began its operations in 1969 has come into the fold of Murugappa Group with Tube Investments (TIL) acquiring a controlling stake in 2012. Subsequently, TIL acquired CG Power in 2020 which caters to the power and industrial sectors. The acquisition by TIL has lent the company strong management bandwidth as well as enormous possibilities to explore new frontiers in technology, capabilities, product segments, and markets. With TIL & its subsidiaries together having a strong customer base across industries, there was synergy in tapping opportunities across various industries and allowing the company to expand to newer markets/industries. SGL, as part of the large Murugappa group, has access to management bandwidth apart from the benefits of procurement synergies.