Material handling

Our key products in our material handling sub-segment include chain hoists, wire rope hoists, grab hoists, crane
kits, light crane systems and pallet trucks. Our products in this sub-segment are used by process industries,
automotive sector and foundries.

According to CRISIL Report, the hoist market in India was 2 6-8 billion as of Fiscal 2020. Among hoists, chain
hoists account for approximately % 1-2 billion, while rope hoists account for approximately % 5-6 billion. Unit-
wise requirement of chain hoists is higher as they have a lower replacement cycle (three to five years), compared
with rope hoists (and ready crane kits), which are usually replaced after five to seven years.

The crane industry is estimated to reach 2 24-26 billion by Fiscal 2024, growing at a CAGR of 5-7% between
Fiscals 2020 and 2024. This growth is expected to be fuelled by continued investments in the end user segments,
and in turn, capacity expansion by players to cater to the sustained demand growth in the underlying industries
such as automobiles, metal and power industries. (Source: CRISIL Report)

The capabilities we use in our material handling sub-segment include design and development, foundry and
casting, manufacture of gears, sheet metal fabrication and assembly, testing and others.

We have entered into a joint venture with Carl Stahl Hebetechnik GmbH (previously known as Carl Stahl
International GmbH) forming Carl Stahl Craftsman Enterprises Private Limited for engaging in marketing,
installation, commissioning and rendering after-sales services for our products in this sub-segment, manufactured
by us. These products are sold through Carl Stahl Craftsman Enterprises Private Limited under the brand “Carl
Stahl Craftsman”. Also see, “History and Certain Corporate Matters - Joint Venture” on page 201.

Gear and gear boxes

Our key products in our Gear and gear boxes sub-segment, include transmission and housing components. Our
products in this segment cater to elevators, metro transportation, compressor manufacturers, printing machines,
automobiles and steel rolling mills.

Growth drivers in the gear and gear boxes sub-segment include growth in steel products, material handling
equipment, elevators and wind power capacity additions. The domestic market for industrial gears and gearboxes
is estimated to have recorded a CAGR of 4-5% from % 39 billion in Fiscal 2015 to reach % 50 billion in Fiscal
2020 and is estimated to record 5-6% CAGR over Fiscals 2020-2024 to reach % 62-64 billion in Fiscal 2024.
(Source: CRISIL Report)

The capabilities we use in our gear and gear boxes sub-segment include design and development of gear and gear
boxes, heat treatment, hobbing, grinding, precision machining and assembly, testing and others.

In this sub-segment, we undertake domestic sales as well as exports to various customers. Our key customers
include Ashok Leyland, Elgi Equipments, Voith Turbo, Pricol, Siemens and others.

SPM

Our key products in our SPM sub-segment, include metal cutting machines, drilling machines, milling machines
and other SPMs like leak testing machines, nut runners, industrial washing machines and supply conveyors. Our
machines in this sub-segment are primarily used by automobile companies.

Growth drivers in the SPM sub-segment include the implementation of BS VI emission norms by the Gol, entry
of new players in the utility vehicles, rise in sale of medium and heavy commercial vehicles due to improvement
in industrial activity and the government’s focus on infrastructure. (Source: CRISIL Report)

The capabilities we use in our SPM sub-segment, include design and development of machines, vendor
development of casting, bought-out components and electronic sub-assemblies, sheet metal fabrication, heavy
duty and precision machining and assembly, testing and on-site installation.

In this sub-segment, we undertake direct domestic sales, and our key customers include Daimler India, Mahindra
& Mahindra, Tata Motors, TAFE Motors and Tractors, Simpson & Co, JCB and others.

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