Automotive Axles Ltd Share Price

Automotive Axles Limited (AAL)  a joint venture of Kalyani Group and Arvin Meritor Inc., USA (formerly the automotive division of Rockwell International Corporation) was established in 1981, AAL has developed an impressive domestic OEM clientele that includes Ashok Leyland, Telco, Vehicle Factory, Jabalpur,Mahindra & Mahindra, Volvo and Bharat Earth Movers.

The infrastructure at AAL spans highly specialized manufacturing processes involving Friction Welding, CO2 Welding, CNC Machining, Flexible Machine Centres and a range of specially built machines for production of Axles and Brakes. The facilities also comprises Gleason Gear Manufacturing Equipment backed by a modern Heat Treatment Shop including Continuous Carburising and Sealed Quench Furnaces. Wide range of Rear Drive Axles catering to commercial vehicles ranging from 6 Tons to 35 Tons GCW, S-Cam Actuated Quick Change Air Brakes for commercial vehicles, and Trailer Axles for 10 Tons to 13 Tons GVW.

The company’s manufacturing facilities are located at Mysore, the company is currently the largest independent manufacturer of Rear Drive Axle Assemblies in the country. Over the years, AAL has developed an impressive domestic OEM clientele that includes Ashok Leyland, Telco, Vehicle Factory, Jabalpur,Mahindra & Mahindra, Volvo and Bharat Earth Movers. AAL exports axle parts to USA, and Italy.

The company brought in Rockwell’s state-of-the-art manufactureing technology to India way ahead of its time expecting it would be able to penetrate a market segment in which CV manufacturers were making their own axles. Due to unforeseen delays caused due to various factors, it took it several years to achieve this objective. The company had therefore to be content with the business of contract manufacturing in which it could barely recover variable costs resulting in the accumulation of significant losses with interest and depreciation burden contributing to the erosion of over 50% of the company's net worth which led to its reference to BIFR in 1989.

Product range of the company includes:

• Single drive Axle- AAL offers a broad selection of single rear drive axles ranging from 6000 kg to 14000 kg GAWR for Truck, Bus, Tractor & construction vocations.
• Tandem Drive Axle- Vehicles used in the mining & Tractor applications are often required to carry extremely heavy loads, AAL offers the following variety of single-reduction tandem drive axles with GAWR capacities from 19000 kg to 28000 kg) for such vehicles.
• Non Drive Axle- This axle does not have drive but used along with drive axles inorder to increase the vehicle load bearing capacity.

Milestones:

• 1981 - Foundation Stone laid
• 1981 - Incorporation and commencement of business
• 1982 - First Annual General meeting of Members
• 1983 - First Public Issue of equity shares
• 1984 - Commercial production of Rear Axle Housing
• 1986 - Commercial production of Brake Assembly
• 1988 - Commercial production of Axle Assembly for LCV manufacturers
• 1991 - Entered Export market by exporting prototypes to MB-Germany
• 1995 - Rights issue in the ratio of 1:4
• 1996 - Sales cross Rs. 1 billion
• 1998 - Quality Management System certified to ISO 9001
• 2000 - Quality System certified to QS 9000
• 2003 - Sales cross Rs. 2 Billion
• 2005 - Quality System certified to TS16949
• 2005 - Sales cross Rs. 3.5 Billion
• 2005 - Foundation Stone laid for 'Kalyani Nagar' colony of Employees
• 2006 - Environment Management System Certified to IS14001
• 2006 - Silver Jubilee year - Sales Cross Rs. 4.5 Billion

Awards/ Achievements:

• AAL has a Quality Management System that is certified to ISO/TS 16949:2002 standard and also Environmental Management System that is certified to ISO 14001:2004 standard.