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Pricol commenced its operations in the year 1975 in Coimbatore, South India. Pricol is one of India's leading dashboard manufacturers headquartered in Coimbatore. The company carries out its business and operations in Driver Information Systems and Sensors, Pumps and Allied Products, Telematics and Wiping Systems catering to leading automotive OEMs in Two / ThreeWheeler, Passenger Vehicles, Commercial Vehicles, Farm Equipment and Offroad Vehicles across India and in International Markets (45+countries) with 2000+ product variants. The company has 8 manufacturing facilities across Coimbatore, Manesar, Pantnagar, Pune, Satara and Sri city in India, 1 manufacturing plant in Jakarta, Indonesia, with 2 international offices in Tokyo, Japan and in Singapore.

Pricol’s substantial market share in instrument clusters for 2w/CV/tractors/off-road vehicle and long-standing customer relations should propel faster growth than the industry, largely due to a premiumization trend - the transition from mechanical to LCD and TFT instrument clusters, which have 3x/10-15x higher content per vehicle compared to mechanical clusters. This was discernible in FY23 itself. The transition will be accelerated by new model launches, EV penetration and increase in share of scooters and premium bikes.

Pricol’s strategy to counter EV penetration risk is to focus more on valueadded offerings for off-road vehicles, construction equipment, heavy duty engines, and foray into EV-specific products like electric coolant pumps (commercial production started) & electric oil pumps. Also, the ACFMS segment contributes 90% of total exports. While the company targets 20% exports as against ~8% currently, the current traction from customers such as Caterpillar, Polaris, KTM, Ducati, Harley Davidson, and BMW, should maintain export at 10-12% of total revenues in the near term.

Pricol has a strong new product pipeline which gives visibility on the growth of the company. Integrated solutions such as advanced telematics and e-cockpit are likely to enhance the content per vehicle in the DIS (Driver Information System) segment. Additionally, efforts on electric coolant pumps, electric oil pumps, disc brakes and BMS (Battery Management Systems) aim to enhance Pricol's offerings in the EV segment, expecting a notable uptick in revenue contribution from EV products.

We believe Pricol should grow faster than industry on the back of a premiumization trend - clusters moving from mechanical to digital, underlying 2W demand rebounding after a lull, ACFMS (Actuation Control & Fluid Management Systems) segment facing tailwinds in exports and introduction of new products. Even excluding any impact of new products and acquisitions, we expect margin expansion, a net cash balance sheet and very strong growth together elevating return ratios, buttressing a possible re-rating

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