9MAY 2024TOP STORIESGENUINE SPARE PARTS SALES DRIVING REVENUE FOR TWO WHEELER MANUFACTURERSSIEMENS FRAGMENTS ENERGY DIVISION INTO NEW ENTITYTwo-wheeler manufacturers Royal Enfield, Bajaj Auto, and Hero MotoCorp have reported record revenue from the sale of branded genuine parts, accessories, and merchandise in FY24. This surge in revenue is attributed to a more organized market for these items and a growing preference among buyers for branded spares over non-branded ones. Additionally, an enhanced product mix, which includes a higher contribution of premium models and an expanded product portfolio in the aftermarket segment, has contributed to increased revenue and profitability.Hero MotoCorp's Performance & StrategyHero MotoCorp, the maker of popular models like the Xpulse and Splendor, has seen a significant increase in revenue from spare parts and accessories. Key highlights include:Revenue Growth: The company reported a nearly 80 percent increase in revenue from spare parts and accessories over the past five years, reaching a record Rs 5,087 crore in FY24, up from Rs 2,836 crore in FY19.Revenue Share: The share of this sub-segment in the company's total revenue rose to 13.6 percent in FY24 from 8.7 percent in FY19.Expansion Plans: Encouraged by the growth potential, Hero MotoCorp plans to expand its Global Parts Centre to further capitalize on this segment.Hero MotoCorp's CEO, Niranjan Kumar Gupta, highlighted that the company's parts, accessories, and merchandise (PAM) business has grown in double digits over the last three to four years, effectively doubling the revenue size of the PAM business. Gupta also noted that the addition of premium motorcycles to the company's lineup will enhance the business scope for merchandise and premium parts. The inclusion of tyre and bike care products has also contributed to revenue growth in this segment. Siemens has announced that its board has approved a plan to separate its energy business into a new legal entity named Siemens Energy India. This newly formed company will operate as a wholly-owned subsidiary of Siemens and will eventually be listed on the market, with its shareholding structure mirroring that of Siemens.The multinational conglomerate explains that the demerger will result in two strong and independent entities, each able to focus more effectively on their specific markets and customers. This strategic move is designed to enhance focus and maximize shareholder value for both businesses.Post-demerger, Siemens will continue to focus on technology-driven areas such as industry, infrastructure, and mobility. On the other hand, Siemens Energy India will concentrate on becoming a leading energy technology company dedicated to supporting its customers in transitioning to a more sustainable global environment.Siemens Energy India will provide comprehensive solutions across the entire energy value chain. This includes power and heat generation, transmission, and storage, leveraging a broad portfolio that encompasses both conventional and renewable energy technologies. These technologies range from gas and steam turbines to hybrid power plants that utilize hydrogen, along with power generators and transformers.As per the arrangement scheme, Siemens shareholders will receive one share of Siemens Energy India for each Siemens share they hold. Following this allocation, the new entity will be listed on both the BSE and the NSE.
< Page 8 | Page 10 >