Rico Auto Industries, a distinguished Gurugram-based supplier of machined components and assemblies, specialising in aluminium and ferrous materials, is making strategic moves to bolster its future growth. Recently, the company secured a leasehold of 12.31 acres at the SIPCOT Industrial Park in Shoolagiri, Hosur.
This acquisition is poised to support its expansion plans, particularly focusing on automotive manufacturers in southern India. Despite facing financial setbacks in FY24, Rico Auto Industries is poised for a robust recovery with promising projections for FY25.
Rico Auto Industries’ latest move to acquire land in Hosur is a testament to its forward-thinking strategy aimed at scaling operations and better serving its clientele in southern India. The SIPCOT Industrial Park, renowned for its robust infrastructure and strategic location, provides an ideal foundation for Rico’s expansion, ensuring seamless support for automotive manufacturers.
Rico’s financial year 2023–24 and how did everything go?
The financial year 2024 posed significant challenges for Rico Auto Industries, with a 23.7 per cent year-on-year decline in net profit, falling to INR 39 crore from INR 51 crore in FY23. Similarly, the revenue saw a reduction of 6.3 per cent, from INR 2,322 crore in FY23 to INR 2,174 crore in FY24. The primary reasons cited for this downturn include the early End of Programme (EOP) for export customers GKN and PSA, coupled with reduced volumes in Renault Nissan programmes and delays in the Start of Production (SOP) of new projects.
Despite the downturn, Rico Auto Industries has managed to cushion the impact by strengthening ties with domestic giants such as Maruti Suzuki and Toyota. Approximately 79% of Rico’s business is generated from the domestic market, showcasing the company’s resilience and strategic adaptability. The management is optimistic about a 15% revenue growth in FY25, driven by new programmes for GKN scheduled to commence in FY25 and increased business share with Maruti Suzuki and Toyota. If you wish to learn more about the international aluminium market, please have a look at AL Circle's special report, Global Aluminium Industry Outlook 2024.
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