WABCO Investment Call
WABCO-TVS (INDIA) is a joint venture between TVS Group and WABCO Holdings Inc. The company has pioneered the manufacture of air-assisted and air brake systems for commercial vehicles in India. With a commitment of total satisfaction to customers, their company has achieved a share of business in the OE (Original Equipment) segment greater than 85% and a market share in the after-market greater than 75%.
The company is the leading provider for air brake actuation systems for commercial vehicles. With intensive R&D efforts and high-quality standards, its products have found global acceptance. Today Australia, Malaysia, UK, Singapore, South Asia, North America, Venezuela & the Middle East are part of its export network.
In 2014, WABCO, in order to improve the safety and efficiency of the commercial vehicle, opened a new Application Engineering Center in Pune, India. The new center, WABCO™s second of its kind in India, allows WABCO™s engineers to work closely with global commercial vehicle manufacturers in India to jointly develop customized products and solutions across a broad range of vehicle platforms.
WABCO-TVS has a solid foundation in its domestic market leadership and pioneering R&D efforts. Comprehensive TQM (Total Quality Management) practices enables WABCO-TVS in being a competitive world-class manufacturer in terms of quality, cost and timely delivery of products.
The company has shown a good growth rate of 17 percent CAGR for the last five years. We expect the company to continue with the performance since this space is almost a necessity for every auto unit.
We expect the share to be priced at about 13900 in the next five years with the current growth rate.
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