Subros was established in the year 1985 as a joint venture between the Suri Brothers, Denso Corporation, Japan and Suzuki Motor Corporation, Japan. The company has grown from a capacity of 15,000 AC units in 1985 comprising of largely an assembly operation, into the largest and only integrated manufacturing unit in India for auto air conditioning (AAC) systems. It has the capability to manufacture compressors, condensers, heat exchangers and all the connecting elements that are required to complete the AC Loop. Subros has three plants, in Noida, Manesar and in Pune. The company has completed construction of its new plants in mid-2006, at Manesar (Haryana) and Pune (Maharashtra), which would further increase capacity to 7.5 lakh units. Commercial production of these plants is expected start from October 2007. It also has a R&D centre and tool room in Noida. Subros currently meets almost 70% Maruti's (MUL) AAC system needs and around 60% of Tata Motors.

Products & Services:

Subros products are known for their reliability, energy efficiency and low noise levels, making them the OE customer's preferred choice. The company manufactures new generation energy efficient swash plate compressors from 83cc ~ 138cc to meet all the customer needs in India. HVACs, Condersors and piping's are designed to suit vehicle configurations.

-Compressors
-Condensors
-Evaporators
-Blowers
-Heaters
-Tubes & Hoses

Compressors - Subros has wide range of swash plate of compressors, compatible for R12 as well as eco friendly R-134a Refrigerant. These compressors are available in different size and capacities to suit your requirements and engine power. Because of its unique design, these compressors draw little power from engine and works efficiently and silently.

Condensors - Subros is the largest manufacturer in India for the automotive condensers. These condensers are manufactured in house with technical collaboration with M/S Denso Corporation of Japan on Japanese machines. Serpentine type of condensers with fan and receiver dryer / condenser cores with corrugated fins has widely accepted by Indian Automobile Industries. Now new range of multi flow condensers are a new revolution in heat exchangers.

Evaporators - Subros existing serpentine evaporators with corrugated fins are highly efficient and light in weight. After extensive trial, Subros has adopted latest technology in evaporators. Multi- Flow (MF) evaporators are 50% lighter in weight and 15% better in performance than existing serpentine evaporator. They also give higher fuel efficiency, better cooling, easy service in the field and need less refrigerant.

Blowers - High speed, low current consumption Blowers with air discharge resulting in complete circulation of air in passenger compartment. Suitable for all types of Maruti, Telco and Honda City vehicles.

Heaters - Aluminium Heater light weight, smaller in size high heat transfer unit suitable for Alto / Wagon-R, Versa, Baleno vehicles.

Tubes & Hoses - Tubes & Hoses made from special grade aluminium material with wrinkle free bending and special grade rubber material for carrying high pressure R134a environment friendly refrigerant from Compressor to Condensor to Evaporator in order to keep the Vehicle cabin cool during summer. Subros Production Facilities - Noida Evaporator Division / R&D Center : This plant produces state-of-the-art, Brazed Multi Flow (MF) Condensors, Serpentine (SP) Condensors and SP Evaporators. The Facilities also include injection moulding shop for manufacture of final assemblies and cooling units.

Compressor & HAVC Division : The compressor plant produces 10P and 10S compressors for various vehicle applications. This plant extensively uses CNC machines and automatic testing equipment for production of compressors. This plant also produces hoses and tube liquids using state-of-the-art equipment.

Die Casting Division / Tool Room : Subros posses India's only Squeeze Die Casting plant to produce high quality intricate castings using squeeze and vacuum die casting. The technology is provided by the collaborator M/s Denso Corporation, Japan.

Subros Production Facilities - Manesar

Manesar Division : Plant has been set up in Manesar in vicinity of the MUL factory on a land area of 38000 sq mtrs. The plant is equipped with latest state of art manufacturing and testing facilities.

Subros Production Facilities - Pune

Pune Division : Pune Plant has been built in Chakan , Pune on a land area of over 24000 sq mtrs. The plant's vicinity to TML helps in providing faster and efficient service to the customer. The plant also cater to the requirements of all other west based customers. The plant has latest production facilities and a new product design/ development setup as well.

Technology & Business Solution

Subros core business processes with appropriate technology in order to formulate a better Decision Support System. This is because today it reduced customer response lead time by integrating supply chain. Company has been able to optimize the time to market a product by reducing the design cycle, appropriate analysis and validation and quicker implementation of design changes. Finally, company has been able to achieve higher levels of operational efficiency by better production and inventory planning and effective budgetary controls. The aim is to Create and Maximize Value.

Subros R & D

In order to gain a competitive edge by reducing product development cost and to be self reliant, Subros is heavily investing in the area of Research and Development which entails product design, development and validation. The facility will enable virtual prototyping and simulation of various air conditioning components in order to achieve optimum efficiency in design, space allocation, airflow and cooling under various climatic conditions. The design and analysis facilities include Catia V4 & V5, Unigraphics CAE (NASTRAN) / CFD (Star-CD).

Besides design and analysis, the company has also set up a large and comprehensive validation centre for both component and vehicle testing. The centre comprises of an Environment Test Chamber (Wind Tunnel) with the capability of checking components in temperatures varying from
-30oC to +60oC under varying speed and sun load conditions, a Calorimeter (Bench Test Rig) and Vibration Test Machines for component testing. Other than these, there also exist various testing equipment for endurance and reliability tests, such as burst test machine, salt spray chamber, pulsation test machine etc.

Valuation:

At current market price, stock is trading at 14.45 P/E multiple of its FY2010 estimated earnings. We recommend investors to buy "Subros Limited" with medium to long term investment horizon.