In our previous article, we had done a detailed SWOT analysis of Enel, an Italian Multinational Electricity & Gas Utility Company. In this article, we are going to explain the SWOT analysis of Endurance Technologies.
Endurance Technologies is one of the top 5 auto components manufacturing companies and the No.1 Aluminium die casting company in India. It has a global presence with manufacturing in 3 countries from 27 plants and exporting to 28+ countries.
Endurance Technologies Ltd. became the leading exporter of auto components and made a strong customer base. It must have strong marketing strategies. Today, businesses are going online and marketing techniques are also changing, if you are interested to learn about the latest marketing techniques – check out our Free Masterclass on Digital marketing 101 by the CEO and Founder of IIDE, Karan Shah.
Now, we will discover strengths, weaknesses, opportunities and threats covering Endurance Technologies. Before we delve into the SWOT analysis of Endurance Technologies let’s learn about the company, its history, products, services and competitors.
About Endurance Technologies
Mr Anurang Jain and his brother started “Anurag Engineering Co. Pvt. Ltd.” in 1985 with the help of Mr Rahul Bajaj in Aurangabad, Maharashtra. It was formed especially for the Aluminum die casting work for Bajaj Auto. In 1996, it entered into a two-wheeler suspension business, and in 1998 into a 2 and 3 wheeler transmission business.
Bajaj Auto was its sole customer till 2004. In 2002, the Jain brothers decided to depart and Mr Anurang Jain took over the Aluminium die-casting business in the name of “Endurance Technologies”.
Today, Endurance Technologie is the No.1 Aluminium Die Casting Company in India, largest 2 and 3 wheeler auto components in India, Top 2 in each product segment offered, and Tier 1 Supplier to major OEMs (original equipment manufacturer).
Endurance has grown to have 27 strategically located manufacturing facilities near its OEMs. The company’s vision is to be consistently recognised as a first choice supplier to all its customers by continuing to foster innovation and deliver excellence by focusing on QCDDM (Quality, Cost, Development, Delivery and Management). Endurance Technologies have 7 designs registered and 9 patents granted in their name. Endurance Technologies had given a major focus to the acquisition, research & development, and in becoming industry leaders in their sales.
|No. of Employees||3,800+|
|Market Cap||Rs 16,740.29 Crore (2022)|
|Annual Revenue||Rs 2,978 Crores (2021)|
|Net Income/ Profit||Rs 3,409.93 Crore (2021)|
Products of Endurance Technologies
Endurance Technologies has been a global marketer since 1990 and deals in the following businesses:
- Aluminium Die-Cast
- Suspension system
- Braking system
- Transmission system
Competitors of Endurance Technologies
Competition among businesses may lead to the development of new or improved goods, as well as more efficient operations. Endurance Technologies has a few major rival companies around the globe. Some of the top competitors are
- Mahindra CIE
- Hirschmann Automotive
- JMP Industries
- Magneti Marelli Cofap Fabricadora De Pecas
Now that we know about the company’s history, its products, and its close competitors, we can move on to the SWOT analysis of Endurance Technologies.
SWOT Analysis of Endurance Technologies
A SWOT analysis examines the strengths, weaknesses, opportunities, and threats that a firm faces. SWOT Analysis is a tried-and-true tool that enables a company like Endurance Technologies to compare its business and performance to that of its competitors.
It will give us a strategic analysis of its internal and external environment, which is crucial for understanding the SWOT Analysis of Endurance Technologies.
To better understand the SWOT analysis of Endurance Technologies, refer to the infographics below:
Below is an explicit guide to the SWOT analysis of Endurance Technologies.
Strengths of Endurance Technologies
Endurance Technologies, being one of the leading companies in its industry, has several benefits that help it flourish in the marketplace. These strengths not only help it retain market share in existing areas but also help it break into new ones.
- Aftermarket Presence: Endurance Technologies have a vast aftermarket presence in Sri Lanka, Bangladesh, Egypt, Guatemala, Nepal, Colombia, Peru and many more opening broader revenue streams.
- Acquisitions: In 2006, Endurance Technologies acquired Amann Druckguss in Germany, in 2007 Fondalmec in Italy and recently in 2020 acquired a 99% stake in Italian clutch Adler SpA.
- Capabilities: Endurance Technologies is a reliable auto component manufacturer with financial strength, client base, strong vendor base, technology leader and a complete solution provider.
- Global Operations: Endurance Technologies has 27 manufacturing facilities in 3 countries including India, Germany, Italy with exporting to 28+ countries.
- Major Distributor: Endurance Technologies is one of the major distributors of Aluminium Casting (including Alloy Wheels), Suspension, Transmission and Braking products, electrical-electronics components, and precision metallic components. Its aluminium die-casting and two-wheeler suspension are used by some of the major automotive manufacturing companies like Hero MotoCorp, Volkswagen, HMSI, Daimler, BMW etc.
Weaknesses of Endurance Technologies
Endurance Technologies’ weakness is an area where he can improve. Strategy is about making important decisions, and weaknesses are areas where a company could improve with the help of a SWOT analysis.
- Proprietary Business: The company manufactures only one product i.e. aluminium die-cast on its own, the rest of the products are manufactured by subsidiaries of the company.
- Poor Revenue Growth: The company has shown poor revenue growth of only 2.06% for the past 3 years.
- Ownership Strength: Ownership strength is slightly missing the benchmark. Endurance Technologies has promoter ownership of around only 70%.
- A decline in ROE: Return on equity has declined very poorly in the last 2 years from 25.74 to 20.3. This means that the wealth of shareholders can decline or have been declined.
- Declining Annual Net Profit: By looking at the company’s cash flow statement, we can determine that its annual net profit has been declining for the last 2 years. Also, the company has not published their financial statements since 2019.
- Expenditure on Building Fresh Supply Chain & Logistics Network: AI has significantly modified the business model in the technology industry and hence, Endurance Technologies has to build a new expensive supply chain network.
- Sloping Market Share With Rising Revenues: The electronic industry is growing faster than the company itself making it challenging to analyze the trends within the technology sector.
- Components Can Get Readily Copied: Endurance Technologies’s business model is the issue to address which can get easily copied by its competitors. The organisation must develop a platform model that can combine suppliers, vendors, and end-users to ensure a secure supply chain.
- Less Investment in New Technologies: As the company embarks on its next phase of expansion, it needs to invest in new technologies that can help it achieve its goals. Currently, investment in technology does not meet the ideas that a company has.
Opportunities for Endurance Technologies
Opportunities are possible areas for a company to consider to improve results, sales, and, ultimately, profit. Endurance Technologies includes the following opportunities:
- EV Transition: As the market is transferring from automobiles to EVs, there could be a better opportunity to attract EV customers and capture EV markets.
- Global Presence: Company can grow its aftermarket services and its global presence to a more advanced level. It can set up more plants outside India.
- Technological Advancements: The new technology provides an opportunity for Endurance Technologies to practice a differentiated pricing strategy in the new market. It enables the firm to maintain its loyal clients with great service and lure new clients through other value oriented propositions.
- Diverse Client’s Preferences: With easy access to information, and quick adoption of technology, clients nowadays are more willing to experiment with new products in the market. Endurance Technologies has to carefully monitor the wider trends within the technology sector to meet such client desires.
- Heavy Government Regulations: With increasing government regulations, unorganised players who are producing automotive components are finding it difficult to operate in the automotive industry, providing Endurance Technologies with an edge to grow the customer base.
- Acquisition Synergies: As we know, the company is forward in terms of acquisitions and mergers. Acquisitions are a good way of expanding an ongoing business with the help of another one by utilising its resources.
Threats to Endurance Technologies
External environmental factors that can harm Endurance Technologies’ growth are known as threats. Endurance Technologies’s threats include the following:
- Raw Material Price Volatility: Aluminium and steel are the major raw materials for the company. Any disruption in the availability or pricing of these raw materials may have a significant bearing on business profitability.
- Global Pandemic Outbreaks: A highly infectious third/fourth wave of COVID-19, leading to lockdowns or restricted mobility, could impact business growth of all auto component manufacturers, due to reduced demand for new vehicles, as well as lower wear and tear of existing ones.
- Strong Rivalry from other Components Providers: There is a lot of competition in the industry these days. This affects prices, resulting in a drop in revenue or income for Endurance Technologies.
- Threat from Local Distributors: Growing strengths of local distributors also presents a threat in some markets as the competition is paying higher margins to the local distributors. Also, local distributors like repairing centres and garages are selling duplicate two-wheeler suspension components in the name of Endurance Technologies which is again another threat for the company.
- Country-specific Regulations: Each country has a different set of rules and regulations regarding the transportation of goods. Some goods have very strict restrictions in some countries making it difficult to transport them.
This ends our complete SWOT analysis of Endurance Technologies. Let us conclude our learning below.
Endurance Technologies is a popular aluminium die casting company and also a holding company for many businesses providing various braking systems and transmission products.
By going through the SWOT analysis of Endurance Technologies, we observed that the company is technology-oriented and is also good at attracting more customers. It is focusing on enlarging its market size, and it could be the market leader in upcoming years.
The company has outperformed its rival competitors with its incredible marketing efforts in branding. With the increasing competition and advancement in technological expertise, digital marketing plays a vital role in boosting traffic, if the company gets better visibility, sales and revenue will eventually increase.
Hundreds of thousands of businesses now use digital marketing to reach a considerable number of people because it is easier and more cost-effective than other traditional ways. If you are interested in learning more and getting upskilled in digital marketing then check out IIDE’s 4-month online digital marketing course to know more.
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