Bharat Seats (BSL) a joint venture between Maruti Udyog (MUL) and Indian entrepreneurs, it was promoted by the Relan family with MUL and Suzuki to manufacture car seats . Technical assistance is provided by Houwa Kogyo Co, Japan, the principal supplier of seats to Suzuki Motors Co, Japan. It was having its manufacturing facility at Gurgaon in Haryana.BSL, which is the pioneer in car seat manufacture in the organised sector, has incorporated many design and raw material improvements in its products to cater to the comfort and safety aspects of driving.
With the launch of the Zen model, it has also gone ahead with the use of ficon free material as per EEC regulations. Bharat Seats, which came out with a public issue in 1988 to set up its manufacturing facilities, is the only ancillary unit of MUL to meet the latters requirement of seat sets for cars, the Gypsy, the Omni and the Zen. With the help of M/s Houwa Kogyo Co. Ltd as a Technical Colloborator the company has developed Seat Sets locally for Marutis latest Vehicle Car-Alto.
Stock Performance:
Company has hit a 52week high of 235 and a low of 75 recently owing to the poor offtake and results below market expectations. Investors can wait for a further fall to Rs.60 levels and enter with a view to hold long term.
Investment Rationale :
This is a Joint venture between Maruti and Relan Group. With a captive customer and turn around the company is likely to do well going forward
Raghav
Equty Research Analyst
Smart Investor
Equity Research
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