NRB Bearings Limited announces JV with Italian industrial bearing manufacturer Unitec

NRB Bearings Limited, India's foremost manufacturer of cylindrical and needle roller bearings and a pioneer in friction solutions across the mobility applications today announced a strategic Joint Venture with Italy-based Unitec Group to give them a leadership position in industrial CRBs.

A leader in automotive bearings, NRB Bearings supplies leading OEMs in India and across the globe. Leveraging the capabilities of its advanced R&D Centre, NRB has been rapidly expanding into industrial applications including offhighway, construction equipment, industrial machinery and gearboxes, and enhancing its penetration in agriculture and general applications; with strategic plans to enter the Aerospace, Defence and Robotics segments.

The partnership with Unitec marks a significant step in this journey, strengthening NRB's technological depth and accelerating its growth in precision industrial cylindrical roller bearings.

Unitec, part of the Mondial Group, is recognized as one of Italy's most respected independent bearing manufacturers of high-precision industrial bearings. The Mondial Group a 60 years history and generates annual revenues of over €60 million. Unitec brings advanced engineering capabilities, deep customization and application- specific know-how, and long-standing customer relationships across Europe's industrial segment. Its customers include globally recognised OEMs such as: Bonfiglioli (industrial gearboxes), SAME (agricultural machinery), Leonardo (defence and aerospace), ITEMA (textile machinery), MAINA (steel manufacturing) and robotics and automation customers across the globe.

NRB and Unitec Group will jointly establish the JV Company in Uppal, Hyderabad, in a state-of-the-art LEED certified plant to manufacture Cylindrical Roller Bearings (CRBs) for the industrial segment, with a scope to supply specific mobility applications, as may be mutually agreed. Unitec Group will provide technical, operational, and engineering expertise. As part of the arrangement, the Unitec Group has also committed to a buyback of 20% of the JV Company's annual production, ensuring assured offtake and sustained capacity utilization.

The JV Company will have up to five directors, initially comprising three nominated by NRB and one nominated by Unitec Group. Both NRB and Unitec Group have agreed not to compete in the manufacture, distribution, or sale of industrial CRBs in India. Unitec Group will act as the exclusive selling agent in Italy for the JV Company's manufactured industrial CRB range and for its existing customers. NRB will act as the exclusive selling agent in India for the products of the JV Company and Unitec Group. NRB will hold a majority stake of at least 75% in the Joint Venture Company, while Unitec Group will own up to 25%, subject to applicable regulatory approvals.

Commenting on the performance, Ms. Harshbeena Zaveri, Managing Director said, "This Joint Venture marks a strategic step in the expansion of our industrial bearings portfolio both in India and internationally. Unitec Group's engineering depth, customization expertise and long-standing OEM relationships across Europe complement NRB's proven manufacturing excellence and scale-up capabilities. Together, we will be able to address a wider spectrum of industrial applications, deliver advanced cylindrical roller bearings solutions to the most demanding OEMs in India and create a strong pipeline of differentiated products for global markets.

Operationally, we continue to maintain discipline across cost structures, working capital and cash generation. Our focus remains on improving profitability while selectively investing in high m-margin segments, building technology leadership and capability for sustainable long-term growth.

As NRB enters its next phase of growth, our emphasis remains on building engineering and technology leadership, production capacity, scaling efficiently, executing with precision, as we deliver sustainable value to all stakeholders. The collaboration with Unitec Group is a strategic milestone that will strengthen NRB's position as a trusted global supplier of high-performance bearing solutions."

Shares of NRB Bearing Limited was last trading in BSE at Rs. 304.60 as compared to the previous close of Rs. 291.70. The total number of shares traded during the day was 68368 in over 1750 trades.

The stock hit an intraday high of Rs. 307.45 and intraday low of 289.45. The net turnover during the day was Rs. 20751648.00.

Source : Equity Bulls

Keywords

NRBBearings INE349A01021 JV