Brakes India, a leading braking systems manufacturer, plans to invest ₹250-300 crore annually over the next five years, aiming to exceed ₹1,000 crore in total. The company expects faster growth in exports compared to domestic business.
FY25 capex might be higher due to new projects. “We typically invest ₹250-300 crore annually. This year, it might be higher due to capacity expansions,” said Sriram Viji, Managing Director of Brakes India. The company is doubling its foundry capacity in Gujarat to 60,000 tonnes, to be completed this fiscal year. Brakes India supplies brakes to 3 out of 4 buses and trucks in India and iron castings to one-third of cars in Europe.
Viji emphasized the company’s commitment to its five-year growth plan, which aims to double domestic business and triple exports. Despite some domestic market slowdown, he remains optimistic. In FY24, Brakes India, part of the T S Santhanam Group within the larger TVS Group, opened offices in Germany, Japan, and Korea to boost export growth. Exports account for nearly one-fourth of its revenue.
Viji noted that many companies are considering shifting from China to India, though this transition is challenging. India is benefiting as some supply chains move in its direction. Nearshoring trends also favor India, with North American companies eyeing Mexico and European firms looking to Eastern Europe, Northern Africa, and India.
“We are very optimistic. As manufacturing becomes more difficult in the US and Western Europe, India will see significant opportunities. We are confident that our exports will grow faster than our domestic business in the medium to long term,” Viji said.
Financial Performance
Discussing FY24 and Q1 FY25, Viji reported robust growth, with consolidated revenues around ₹7,500 crore in FY24, up from ₹6,900 crore in FY23. Growth was driven by ongoing businesses and volume ramp-ups, despite limited export growth in FY24. Passenger car demand remained strong in Q1 FY25, while commercial vehicle demand was sluggish.
