Gala Precision Engineering Ltd - Stock Valuation and Financial Performance

Gala Precision Engineering Limited was incorporated as ‘Gala Precision Engineering Private Limited’ under the Companies Act, 1956, as a private  limited  company  pursuant  to  the  certificate  of  incorporation  issued  by  the  RoC  on  February  23,  2009.The Company entered into a Business Transfer Agreement dated May 26, 2009 to transfer the business operations from Gala Precision  Technology  Private  Limited. The  name  of  the  company  was  subsequently  changed  to  ‘Gala  Precision Engineering Limited’, upon conversion into a public company, pursuant to a board resolution dated September 5, 2023 and a shareholder’s resolution dated October 3, 2023, and a fresh certificate of change of name was issued on October 25, 2023 by the RoC.

The company is a precision component manufacturer of technical springs like disc & strip springs (DSS) including wedge lock washers; coil & spiral springs (CSS) and special fastening solution (SFS) supplying to original equipment manufacturers (OEMs), Tier 1 and channel partners; used in sectors like renewable energy including wind turbine and hydro power plants, various industrial sectors such as electrical, off highway equipments, infrastructure and general engineering, mobility segments such as automotive and railways. The company’s listed competitors include Harsha Engineers International Limited, SKF India Limited, Sundram Fasteners Limited, Rolex Rings Limited, Sterling Tools Limited and Ratnaveer Precision Engineering Limited. Its technical springs and high tensile fasteners have been supplied to customers in countries such as Germany, Denmark, China, Italy, Brazil, USA, Sweden, Switzerland etc. Accordingly, the company is a key link in the global supply chain for OEMs.

The company’s business primarily comprises of (i) springs technology division, under which it manufactures DSS including wedge lock washers (WLW), CSS and (ii) SFS in which it manufactures anchor bolts, studs and nuts. The company’s DSS products find applications in renewable energy, railways, automobiles, off highway vehicles, heavy machinery, electrical and power equipments. The company’s disc springs confirm to German DIN 2093 standards, bearing series, and customized specifications featuring variety of raw materials and surface coating options. It manufactures strip springs customised for high fatigue applications. It is mainly competing with Muhr und Bender KG, Schnorr GmbH, Christian Bauer GmbH + Co. KG in the global disc springs market and with International Industrial Springs in disc springs in India. The company’s CSS products are used in commercial vehicles, passenger vehicles, railways and industrial infrastructure. It has positioned itself as a key import substitution for European springs suppliers and multinationals looking at PLI Schemes and other incentives offered by the Government. 

Business area of the company

The company is a precision component manufacturer of technical springs like DSS including wedge lock washers; CSS and SFS supplying to OEMs, Tier 1 and channel partners; used in sectors like renewable energy including wind turbine and hydro power plants, various industrial sectors such as electrical, off highway equipment, infrastructure and general engineering, mobility segments such as automotive and railways.

Awards, accreditations and recognition

• 2015: Supplier of the year from ABB, Germany in DSS product group.
• 2017: Star Performer 2015-2016 Metal Fasteners, Springs and Miscellaneous Articles made from Metal Wire Large Enterprise by EEPC India at 34thExport Awards (Western Region).
• 2017: Gala Precision Engineering Private Limited has undergone Business Excellence Site Assessment at 1st Business Excellence Competition. 
• 2018: Gold Category Award from Endurance Technologies Limited, India. 
• 2018: Certificate  of  Appreciation  from  Rane  TRW  (ZF)  for  Positive  Accomplishments  and  Progress towards Supplier Development Program.
• 2019: Certificate  of  Merit  awarded  to  Gala  Precision  Engineering  Private  Limited  at  IMTMA-ACE Micromatic Productivity Championship Awards 2019 at National Productivity Summit.
• 2020: Silver Award at CCQC-20, Mumbai.
• 2021: Award Par Excellence awarded at National Convention on Quality Concepts, Coimbatore.
• 2022: Winner (SME Sector) under Best Energy Efficient Case Study Category in the 6thEdition of CII National Energy Efficiency Circle Competition. 
• 2023: Award  for  High  Quality  and reliability  of  Supply  of  the  Year  2022 by  Wuerth  Industrie  Service GmbH & Co KG, Germany. 
• 2023: Great Place to Work certified by the Great Place to Work Institute, India. 
• 2023: Category-Mid-Size Organizations.
• 2024 India’s Best Workplace in Manufacturing (Top 26-50) by the Great Place to Work Institute, India.

History and milestones

• 2013: Started offering complete range of Parts washing and cleaning systems including Ultrasonic cleaning.
• 2014: Expanded products range of Disc springs by adding Bearing series Disc springs and serrated washers
• 2015: Development of spring assemblies for Power sector. Development of Spiral springs and Brush springs.
• 2016: New Plant commissioned for coilsprings. Award from ABB, Germany for disc springs as one of their top 10 suppliers.
• 2017: Best Supplier award for Quality & Delivery Performance from leading Automotive Transmission manufacturer Endurance Technologies for Strip springs.
• 2017: Springs Plant audited by Global Automotive Tier 1 companies like Hitachi, Continental, Schaeffler, Wabco, ZF-TRW, Knorr Bremse.
• 2018: Gallock Supplies started to Indian Railways.
• 2018: SFS plant audited & approved by leading global wind turbine manufacturer for High Tensile studs & Foundation anchor studs.
• 2020: Started supplying Compression springs for Metro Rail for a European customer, on approval in their German Lab.
• 2022: Export started of fastener to USA and Europe markets.
• 2022: Purchased land in Vallam-Vadagal, SIPCOT, Sriperumbuddur, Tamil Nadufor future expansion of fastener business.
• 2022: Sold manufacturing of and activities relating to Surface Engineering Solutions (SES), including goodwill  and  technical  knowhow  in  relation  to  supplies,  intangible  assets  of  mass  finishing equipments and parts cleaning equipments, except for supplies to Public Sector Undertakings and Government Organizations.
• 2023: Sold manufacturing of and activities relating to Surface Engineering Solutions (SES), including technical  knowhow  in  relation  to  supplies  to  Public  Sector  Undertakings  and  Government Organizations, and intangible assets of mass finishing equipments and parts cleaning equipments.