Auto Ancilliary: Well-oiled for growth?

Exports, expansion and automobile boom should ensure frictionless movement for components industry.
More and more vehicles around the world from Europe to China and South Africa to USA are gradually sporting their tri-colour origins, from nuts and bolts to steel forgings.
One of the sectors that has been surging ahead in the India outsourcing story, is auto ancillary. Exports of components from India as a percentage of total sector revenue are expected to nearly double over the next five years.
Further, at a time when the markets have applied brakes on the long-drawn bullrun, this is one promising sector that could accelerate faster in future, even as it could have its share of rusty patches.
Analysts are particularly bullish on frontline auto ancillary companies like Bharat Forge, Rico Auto, Sundaram Fasteners, Amtek Auto, Sona Koyo, Munjal Showa, Motherson Sumi and Mico Bosch, on the back of factors like diversified product baskets and aggressive growth plans.
The bottomline growth of these companies in FY06, although a little muted, gives some idea of the future.

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