In an era of rapid technological advancement and shifting market dynamics, companies must evolve to remain competitive. NBC Bearings, a leading manufacturer of bearings, a brand of National Engineering Industries Ltd (NEIL), exemplifies this adaptability. From its roots in the automotive sector to its expansion into diverse industries, their journey offers valuable insights into the challenges and opportunities facing modern manufacturing companies. In an interview with Subadra Anand, Rohit Saboo, President & CEO, NEIL, recently discussed the company’s growth strategy, technological innovations, and commitment to sustainability. His insights reveal a company at the forefront of industrial evolution, tackling challenges while embracing new opportunities.
Expanding Horizons
NBC Bearings’ decision to diversify beyond the automotive sector was a strategic move to leverage existing expertise. Saboo explains, “It is a natural progression. Earlier, we experienced rapid growth in the automotive industry, which is highly competitive. We decided to utilize our knowledge in the industrial segment as well. We have developed numerous new technologies, such as high-speed bearings, low-noise bearings, sensor bearings for the EV segment, bearings with reduced friction, and insulated bearings for traction motors.”
This expansion has not been without challenges. Entering new markets requires technological prowess and the ability to build trust with potential customers. The company faced initial resistance as a new player in these sectors but gradually overcame skepticism through consistent performance and rigorous testing.
Investing in the Future
Perhaps the most ambitious aspect of NBC Bearings’ diversification strategy is its entry into the aerospace sector. The company has invested 50 crore rupees in aerospace and space technology, signaling its commitment to high-precision engineering. This move positions them to compete globally in one of the most demanding industries.
Saboo emphasizes the company’s progress: “We have invested nearly 50 crore rupees in the aerospace and space segment, engaging with Indian and foreign customers. Our bearings and components are at various levels of development and approval.”
This investment diversifies NBC’s portfolio and contributes to India’s growing aerospace industry, potentially reducing reliance on imports for critical components.
Sustainability at the Core
In an age of environmental consciousness, NBC has integrated sustainability into its operations across all sectors. Saboo details the company’s initiatives: “Our efforts on the environment and sustainability are plant-specific, not product-specific. For example, we have installed over 10 MW of solar power, and all roof water is collected and recharged into the ground. In one of our plants, we are water negative, meaning we replenish more water than we consume. Our new plant in Bagru has a large pond for collecting rainwater, sufficient for an entire year.”
These efforts extend beyond water conservation to energy efficiency and plastic reduction. NBC has implemented smart meters to optimize energy usage and aims to eliminate plastic from its packaging and manufacturing processes within a few years. Such initiatives benefit the environment and contribute to cost reduction, demonstrating that sustainability and profitability can coexist.
Despite its strong market position, NBC Bearings is not immune to economic fluctuations. The first quarter of the current financial year proved challenging due to reduced sales in commercial vehicles and tractors, where they have a strong presence. However, the company’s cost reduction initiatives have helped maintain EBITDA margins.
Looking ahead, Saboo remains optimistic: “In the medium to long term, we are very bullish about not only the automotive industry but also railways. We are doing well this year and will continue to excel in the coming years, supported by the government’s increased focus and spending on railways.”
This optimism is tempered by a realistic approach to market challenges, particularly in the aftermarket segment. Rajesh Premchandran, Chief Sales and Marketing Officer, highlights the impact of digitalization: “One of the biggest challenges we face in the aftermarket is digitalization. The changes in the automotive sector parallel trends in retail. Dealers are struggling to create demand and ensure profitability, making it crucial to adapt.”
This shift in market dynamics prompts NBC Bearings to explore new strategies, including expanding its product range and leveraging its strong retail network to move beyond bearings.
As the bearing industry evolves, NBC Bearings is at the forefront of incorporating advanced technologies into its products. Their focus on developing bearings for electric vehicles, implementing digital solutions in manufacturing, and creating products that enhance fuel efficiency underscores their commitment to innovation. These technological advancements improve product performance and align with global trends toward energy efficiency and data-driven decision-making.