Thread by @ValueEducator

A Detailed Analysis on Shivalik Bimetal Controls - A niche technology leader with a global presence!!

CMP - ₹517

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1. About the Company
•Shivalik Bimetals Manufactures Bimetal Strips, Shunts resistors & Electrical contacts which are used in industries such as Automotive, Electrical & Electronics, Industrial,etc.

•They use complex processes like Diffusion Bonding and Electron Beam Welding Technology.
•Earlier it used to manufacture Cathode Ray Tube(CRT) which were used in old TVs. But the emergence of LED TV technology completely changed their business in Bimetals

•It has the World’s Largest Capacity and Production of Strip Electron Beam Welding.

2. Products

3. Revenue Split

4. Journey

•In 2022, Shivalik acquired 100% stake(earlier 50%) of Shivalik Engineered Products Private Ltd.
•It has 16% stake in Innovative Clad Solutions Private Ltd. which manufacturers customised clad strips for SEZ, Pithampur, Indore, MP. Majority of the stake is with ArcelorMittal

5. Manufacturing Facilities

6. Management

7. Capex
•The company has already spent ₹75 Cr for capex over FY2021 to FY2023
•They will be also spending ₹20-30 Cr for optimization and to improve productivity over FY2024 to FY2026 and Post the expansion, it will have a sales potential of ₹1,600 Cr

•Shivalik Bimetals has the World’s largest capacity and production of Strip Electron Beam Welding facility

8. Clients
•Shivalik’s Top 5 customers for Bimetals contribute to 30% of the revenue and for Shunts Resistors they contribute to 40%.

•In the domestic EV market, the company is already supplying its Shunt Resistors to major players like Mahindra & TATA.
•Customers invest a good amount of time and some amount of capital in the toolkit for the development of a product. Hence It is highly likely that they stick

with the same supplier with a diverse product portfolio as Shivalik’s.
•In the international market they have been a tier 2-3 supplier to many but they are consistently adding new customers that they supply to as a Tier 1 supplier

9. Financials

10. Applications of Shunt Resistors in EV

11. Opportunities
•They specialise into a niche product that competes internationally with high quality low Ohmic shunts.
These products require high precision, stringent and lengthy approval from OEM’s and Shivalik is already catering to many automotives clients.

•In India, there has been an Increasing use of electric smart meters in parts such as UP, Bihar & Rajasthan and Shivalik is the only supplier of very low ohmic shunts used in meters.
•The Auto Industry has seen an increasing demand for Electric Vehicles, Changing stations,

Battery Management systems & Critical safety components.
•Shivalik Manufactures cost competitive products and they have a very established in-house R & D facility and Technology

12. Threats
•Shivalik is heavily dependent on Imports of raw material which is around 80%. This includes alloys of metal such as Copper and Nickel.
•There are bigger international players that are highly competitive in terms of quality and have much better reach in the market.

•It is a Tier 2-3 Supplier to many of the clients which makes them dependent on their channel partners.

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