Should you buy?-Business Journal
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Timken India shares have been giving upside movement for the last one year. In this period Timken share price has shot up from ₹1040 to ₹1700 levels — logging around 65 per cent rise in this period. However, Choice Broking is seeing more upside move in this anti-friction ball bearing maker company’s stock price on record budgetary allocation to the Indian Railways. Apart from this, Timken India has acquired ABC Bearings that has enabled the company to create new business opportunity worth ₹450 crore to ₹500 crore in wheel segment. The brokerage report says that the stock may go further upside from ₹1702 to ₹2132.80 per share levels — around 25 per cent higher in long-term. Highlighting the fundamentals that may support this mid-cap stock rally further, the Choice Broking report said, “With a record high budgetary allocation of ₹1.1 lakh crore for FY22, the total capital expenditure of Indian Railways (IR) is expected to touch ₹2.15 lakh crore in the fiscal — highest ever in a year. As per the announced plans, Indian Railways is expected to increase the LHB coach production to 6500 units in FY22. Also, as coach upgradation gathers pace, older trains are gradually upgrading to Cartridge Taper Roller Bearings (CTRB) while new trains are coming with 100% CTRB.”
The Choice Broking report further says that in railway freight application, Timken India Limited enjoys 50 per cent market share. Mainly due to its lower field failure rates, TIL is a technical partner for Indian Railways dedicated freight corridor. High speed trains is other area where TIL’s products will find market and acceptance. With around two-dozen metro projects lined up, India is massively looking to expand the metro rail coverage. TIL currently has more than 60 per cent of share in metro bearings market with potential revenue of ₹100 crore per annum in the next five years. On acquisition of ABC Bearings aiding expansion of TIL’s market, Choice Broking report says, “After the acquisition of ABC Bearings, TIL has gained access to new market segment — the wheel-end segment with a market size of ₹450 to ₹500 crore. Post-Covid pandemic, the company can further grow in this segment as historically, this market segment was flooded with cheap imports from China.”
The brokerage report on Timken India Limited says that the company is planning to foray in export market via its cylindrical and spherical roller bearings manufactured at Baruch plant. On its suggestion to long-term investors in regard to Timken shares, the Choice Broking report said that one can buy this counter at CMP ( ₹1702 apiece) for 18 to 24 month target of ₹2132.80 per share levels — around 25 per cent upside in long term. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. Subscribe to Mint Newsletters

Choice Broking sees up to 25% rise in this mid-cap stock. Should you buy?-Business Journal

Key Companies Covered in Bearings Market Research Report Are NSK Ltd, Nachi-Fujikoshi Corp, myonic GmbH, LYC Bearing Corporation, Luoyang Huigong Bearing Technology Co., Ltd., Koyo, ISB Industries, NTN Bearing Corporation, SKF, The Timken Company, THB Bearings, Schaeffler Technologies AG & Co. KG. | Source: Fortune Business Insights
Pune, May  27, 2020  (GLOBE NEWSWIRE) -- The global bearings market size is expected to reach USD 52.44 billion by 2026, exhibiting a CAGR of 3.6% during the forecast period. The booming automotive sector will contribute tremendously to the growth of the market. The rising application of bearings in the food processing industry will bolster healthy growth of the market during the forecast period, states Fortune Business Insights in a report, titled “Bearings Market Size, Share & Industry Analysis, By Type (Ball Bearing, Roller Bearing), By Application (Automotive, Industrial Machinery, Aerospace, Others), and Regional Forecast, 2019-2026” the market size stood at USD 39.46 billion in 2018. Get Sample PDF Brochure: https://www.fortunebusinessinsights.com/enquiry/request-sample-pdf/bearings-market-101608
An Overview of the Impact of COVID-19 on this Market:
The emergence of COVID-19 has brought the world to a standstill. We understand that this health crisis has brought an unprecedented impact on businesses across industries. However, this too shall pass. Rising support from governments and several companies can help in the fight against this highly contagious disease. There are some industries that are struggling and some are thriving. Overall, almost every sector is anticipated to be impacted by the pandemic. We are taking continuous efforts to help your business sustain and grow during COVID-19 pandemics. Based on our experience and expertise, we will offer you an impact analysis of coronavirus outbreak across industries to help you prepare for the future. Click here to get the short-term and long-term impact of COVID-19 on this Market. Heavy Demand for Precision Bearings to Propel Market
The rising industrial automation has led to the demand for precision bearings, which, in turn, will aid the expansion of the market. The increasing application of bearings in the aerospace industry will foster the growth of the market during the forecast period. Moreover, the growing development of advanced robots will fuel demand for miniature bearings in the forthcoming years. The growing focus of manufacturers towards the product offering of miniature bearings owing to the advantages over other bearings will enable speedy expansion of the market. For instance, SKF, a seal and bearing manufacturer offers an extensive range of miniature ball bearings available in stainless steel along with seals or shields for various applications. The technological advancement in medical equipment, and audio-visual equipment and other automation will spur opportunities for the market. Furthermore, the growing demand for coated bearings for as compressors, hydraulic pumps & motors, and marine & offshore applications will favor the growth of the market in the foreseeable future. In addition, the increasing collaborations and partnerships among major key players will subsequently aid the expansion of the market. For instance, Calico Coatings collaborated with ACL, Mahle/Clevite, and Durabond to deliver CT-1 Dry Film Lubricant coated bearings for a high-performance engine. Speak to Analyst: https://www.fortunebusinessinsights.com/enquiry/speak-to-analyst/bearings-market-101608
Rising Infrastructure Development to Boost Growth in Asia Pacific
Asia Pacific is expected to hold the major share during the forecast period owing to rising demand for bearings from various industries such as the automotive, aerospace, and packaging industry. The booming automotive sector will influence healthy growth in the region. According to the Society of Indian Automobile Manufacturers (SIAM), in the first quarter of 2019, the total passenger vehicle trade increased by 2.7%. The growing demand for industrial machinery owing to the rising infrastructure development will contribute positively to the growth of the market in Asia Pacific. Europe is predicted to account for the largest share in the global market due to the well-established automotive industry. The presence of major automobile companies will foster growth in the region. In addition, the heavy demand from the aerospace industry will promote growth in Europe. Key Development:
October 2019: JTEKT Corporation announced the release of creep resistance features for ball bearing which will be primarily used in the transmissions of hybrid; electric vehicles and, CVTs of engine cars. August 2018: Timken India Ltd. a subsidiary of Timken Company announced that it has acquired ABC Bearings Ltd, a major producer and leader of cylindrical, tapered and, spherical roller bearings based in India
List of the Key Companies Operating in the Bearings Market are:
NSK Ltd
Koyo
Have a Look at Related Research Insights:
Cross Roller Bearings Market Size, Share and Industry Analysis by Type (Single Inner and Split Outer Ring, Split Inner and Single Outer Ring, Others), By Dimension (18 to 50mm, 50 to 150mm, 150 to 250 mm, 250 to 400 mm, 400 to 630 mm, 630 to 800 mm, >800 mm), By Industrial Vertical (Industrial Machinery, Medical Systems, Robotics, Semiconductor Manufacturing Equipment) and Regional Forecast 2019-2026
Aerospace Bearings Market Size, Share & Industry Analysis, By Bearing Type (Roller Bearings Ball Bearings), By Application (Landing Gears, Engines, Aero structure, Flight Control Systems, Others (turbojets, turbofans, turbo shafts, etc. )), By End use (Helicopter, Aircraft, Space) and Regional Forecast, 2019-2026
Roller Bearings Market Size, Share and Industry Analysis By Product Type (Tapered, Spherical, Cylindrical, Others), By Application (Automotive, Industrial Machinery, Aerospace, Others) and Regional Forecast, 2019 - 2026
Ball Bearing Market Size, Share and Industry Analysis By Product Type (Self-Aligning Ball Bearings, Deep Grove Ball Bearings, Angular Contact Ball Bearings, Others), By Application (Automotive, Industrial Machinery, Mining & Construction, Medical, Others), and Regional Forecast, 2019 - 2026
About Us:
Fortune Business Insights™ offers expert corporate analysis and accurate data, helping organizations of all sizes make timely decisions. We tailor innovative solutions for our clients, assisting them address challenges distinct to their businesses. Our goal is to empower our clients with holistic market intelligence, giving a granular overview of the market they are operating in. Our reports contain a unique mix of tangible insights and qualitative analysis to help companies achieve sustainable growth. Our team of experienced analysts and consultants use industry-leading research tools and techniques to compile comprehensive market studies, interspersed with relevant data. At Fortune Business Insights™, we aim at highlighting the most lucrative growth opportunities for our clients. We therefore offer recommendations, making it easier for them to navigate through technological and market-related changes. Our consulting services are designed to help organizations identify hidden opportunities and understand prevailing competitive challenges. Contact Us:
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Bearings Market to Reach USD 52.44 Billion by 2026; Acquisition of ABC Bearings by Timken India to Lighten Sales Possibilities, states Fortune Business Insights™

2 min read. Updated: 26 Nov 2019, 08:17 PM ISTAditya Kalra, Reuters
The CCI said it analysed the emails, call records, executive testimonies of the firms and concluded that the bearings units contravened antitrust law by discussing, agreeing prices
The investigation panel said it found no evidence against the fifth firm, ABC Bearings, part of US firm Timken Co
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NEW DELHI :An Indian antitrust probe has found that units of Tata Steel Ltd, Sweden's AB SKF and Germany's Schaeffler AG colluded on the pricing of bearings, according to an investigation report seen by Reuters. The Competition Commission of India (CCI) began an investigation in 2017 after receiving allegations of five companies colluding on bearings prices from 2009-2014 to pass higher raw material costs onto customers in the auto sector. Bearings reduce friction in moving parts, helping smooth the operation of vehicles. India's bearings market is dominated by SKF and Schaeffler and is worth $1.3 billion, showed data from ICRA Research. CCI's investigations arm, in a report dated May 6 which has not been made public, said it analysed company emails, call records and executive testimonies and concluded that SKF India Ltd, Schaeffler India Ltd, National Engineering Industries and Tata Steel's bearings division contravened antitrust law by discussing and agreeing prices. SKF, the world's largest maker of ball-bearings, in a statement said it aided the investigation, and that "we dispute any claim of wrongdoing on the part of SKF". Schaeffler did not respond to a request for comment. Tata Steel and National Engineering Industries - part of Indian conglomerate CK Birla Group - declined to comment beyond saying the CCI proceedings were confidential. The investigations arm said it found no evidence against the fifth firm, ABC Bearings, part of US firm Timken Co, the report showed. ABC Bearings declined to comment. The report also showed the investigations arm considered the collusion lasted through the financial year to March 2011 but found no evidence to indicate when it actually ended. The four firms, "through personal meetings of key persons, on two occasions shared the strategic information regarding their future efforts to seek price increase from" auto sector companies, the investigations arm said in its 106-page report. The CCI did not respond to a Reuters request for comment. A person with direct knowledge of the matter said senior CCI officials are reviewing the report and that the antitrust body is able to dispute the findings of its investigation arm. The CCI can fine firms up to three times the profit made in each year of wrongdoing or 10% of revenue, whichever is higher. In 2014, European Union antitrust regulators fined SKF, Schaeffler and three Japanese auto parts makers $1.3 billion for taking part in a bearings cartel from 2004 through 2011. "Incentive to collude"
The investigation report showed the four companies controlled nearly 75% of the domestic bearings market in the period 2009-11 - a time when prices of steel, the key raw material in bearings, were fluctuating sharply. The steep steel price volatility, the CCI's investigation arm said, provided the companies an "incentive to collude". There was consensus among the firms "to seek price increase of 12% and settle at 6%" with tractor and automotive manufacturers. With motorbike makers, there was a consensus to seek a 10% price increase and settle at 4%, the report showed. The investigation arm also said Schaeffler and National Engineering Industries told the CCI that employees had participated in discussions with competitors "mainly to seek coordinated price increase of bearings". It did not elaborate on when the companies disclosed discussions to the CCI. During the probe, ABC Bearings, SKF and Tata Steel's bearings division told the CCI they had no evidence of such discussions, the report showed. "The conduct of the parties has resulted in appreciable adverse effect on competition," the CCI investigation arm said in the report. "The sharing of price information is particularly sensitive from the competition law perspective." Share Via

Competition commission probe finds SKF, Schaeffler, Tata Steel units colluded on bearings prices

11 31 AM IST
Timken India’s pricey deal a boon for ABC Bearings’ shareholders
ABC Bearings shareholders will get five Timken India shares in exchange for eight of former. This implies a 77% premium to ABC Bearings’s market price
ABC Bearings shares vaulted 20% on Wednesday, even as Timken India shares surged by 16%. Photo: iStock
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On Wednesday, in a pricey but smooth deal, global bearings manufacturer’s Indian outfit Timken India Ltd (TIL) took over domestic player ABC Bearings Ltd (ABL). Pricey it is, because shareholders of ABL will get five TIL shares in exchange for eight of ABL. This implies a 77% premium to ABL’s market price (Rs238 on Tuesday). The euphoria was visible on the Street too, as ABL shares vaulted 20% on Wednesday, even as TIL shares surged by 16%. The deal is indeed an excellent proposition for ABL shareholders. They now become a part of a global bearings manufacturing firm whose annual revenue and profit is about five times that of ABL. Besides, the capacity utilisation of less than 50% in recent times suggests that it has not been a smooth ride for ABL. This may be because it caters mainly to the commercial vehicle segment that has not been upbeat in the last few quarters. More From Livemint »
On the other hand, the cash-rich TIL has been on a roll as it caters to a wide spectrum of domestic customers—industrial, railways, commercial vehicles including the replacement market and even wind energy. And, nearly half its revenue comes from exports, for which TIL plans to make India a hub. But then, its March quarter revenue took a hit when the company had to expand capacity due to constraints in catering to the growing market. Click here for enlarge
According to Priya Raman, vice-president, auto and auto ancillary, Systematix Shares, ABL’s take over may lead to an equity dilution in the near term, but is certainly earnings accretive as TIL will gain capacity and market share along with a wider portfolio. Subscribe to Our Newsletter »
Perhaps, TIL also sees the opportunity growing with the new goods and services tax (GST) making it hard for small players in the unorganized market to compete. In any case, ABL like many small and mid-sized domestic players has had a rough ride. Chinese products have added to competition in the replacement market. And, global corporations like FAG Bearings Ltd, SKF Ltd and TIL that account for nearly two-thirds of the organized original equipment market are cash-rich enough to withstand business risks. The TIL-ABL deal is likely to conclude by March 2018, when the latter’s shares will be dissolved and merged into TIL’s equity. Interestingly, the deal may be the precursor to more such in the bearings sector, where the big could get bigger in the next two to three years. Little wonder that all the stocks of bearings firms closed higher on Wednesday. First Published: Thu, Jul 06 2017. 11 31 AM IST

Timken India’s pricey deal a boon for ABC Bearings’ shareholders

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NORTH CANTON, Ohio, July 5, 2017 /PRNewswire/ -- The Timken Company (NYSE: TKR ; www.timken.com ), a world leader in engineered bearings and mechanical power transmission products, today announced that its majority-owned subsidiary, Timken India Ltd., has entered into a definitive agreement to acquire ABC Bearings Ltd., a manufacturer of tapered, cylindrical and spherical roller bearings, and slewing rings in India. The transaction is structured as a merger of ABC Bearings Ltd. into Timken India Ltd., whereby shareholders of ABC Bearings will receive shares of Timken India as consideration. The transaction is subject to receipt of various approvals in India, which are expected to take at least six months to complete. "Timken is a leader in the growing Indian bearing market, and the acquisition of ABC Bearings will expand our capacity, our customer base and our locally produced product breadth," said Richard G. Kyle, Timken president and chief executive officer. "In addition, we expect to leverage ABC Bearings' competitive manufacturing footprint to serve export markets." ABC Bearings is a public limited company listed on the BSE Limited, with its registered office in Mumbai, India. The company operates primarily out of manufacturing facilities in Bharuch, Gujarat, and Dehradun, Uttarakhand. ABC Bearings serves an established original equipment customer base in India, focusing on heavy truck and off-highway industries. In 2016, sales were approximately $29 million. Timken India is a public limited company listed on the National Stock Exchange of India Limited and BSE Limited. Following the acquisition, Timken will maintain a majority stake in Timken India, and Timken will continue to consolidate Timken India in its financial results. About The Timken Company
The Timken Company (NYSE: TKR ; www.timken.com ) engineers, manufactures and markets bearings, gear drives, belts, chain, couplings, and related products, and offers a spectrum of powertrain rebuild and repair services. The leading authority on tapered roller bearings, Timken today applies its deep knowledge of metallurgy, tribology and mechanical power transmission across a variety of bearings and related systems to improve reliability and efficiency of machinery and equipment all around the world. The company's growing product and services portfolio features many strong industrial brands including Timken®, Fafnir®, Philadelphia Gear®, Drives®, Lovejoy® and Interlube™. Known for its quality products and collaborative technical sales model, Timken posted $2.7 billion in sales in 2016. With more than 14,000 employees operating from 28 countries, Timken makes the world more productive and keeps industry in motion. Certain statements in this release (including statements regarding the company's estimates and expectations) that are not historical in nature are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. In particular, the statements regarding the company's expectations regarding growth initiatives, expansion of its global footprint and expected market opportunities are forward-looking. The company cautions that actual results may differ materially from those projected or implied in forward-looking statements due to a variety of important factors, including: the inability to complete the acquisition or unexpected delay in the completion of the acquisition due to either the failure to satisfy any condition to the closing of the transaction, including receipt of shareholder or regulatory approval, the impact of pending regulatory or stock exchange proceedings or approvals, or the occurrence of any event, change or other circumstance that could give rise to the termination of the scheme of merger or implementation agreement; the inability to successfully integrate the newly acquired business into the company's operations or achieve the expected synergies associated with the acquisition; and adverse changes in the markets served by the newly acquired business. Additional factors are discussed in the company's filings with the Securities and Exchange Commission, including the company's Annual Report on Form 10-K for the year ended Dec. 31, 2016, quarterly reports on Form 10-Q and current reports on Form 8-K. Except as required by the federal securities laws, the company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. Media Relations:

Timken to Acquire ABC Bearings Ltd., Further Expanding Its Global Reach

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ABC Bearings is a manufacturer of tapered, cylindrical and spherical roller bearings, and slewing rings in India.

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