Think of a bicycle: when you push the pedals, the chain carries that spinning power to the back wheel, making the bike move forward.
Adroit Industries (India) Limited does something very similar, but for much bigger machines. It makes the heavy-duty metal parts that carry spinning power from a vehicle’s engine to its wheels. Its parts are used in trucks, tractors, SUVs, construction equipment, defence vehicles, and factory machinery.
Here’s how the business works, step by step:
What Does It Actually Make?
When a truck’s engine runs, it creates spinning power. But the engine and the wheels are not always sitting right next to each other. So, that power needs to travel from the engine to the wheels.
That’s where a propeller shaft, basically a long, strong spinning metal rod, comes in.
Adroit makes these propeller shafts along with more than 5,000 other parts that help transfer this power:
Universal Joints: Think of these like a flexible wrist. They allow the spinning shaft to move up and down as the vehicle travels over bumps.
Yokes and Flanges: These work like strong connectors that join different parts of the spinning system together.
Stub Shafts: These are smaller metal shafts that help connect the main rotating parts.
So, in simple terms, Adroit makes the metal parts that help a vehicle’s engine send its power to the wheels.
How Does It Make These Parts?
Adroit follows a vertically integrated model, which simply means it handles most of the manufacturing process itself instead of depending heavily on outside suppliers.
It has three manufacturing facilities in Madhya Pradesh:
Forging at Dewas: Raw steel is heated until it becomes extremely hot and then pressed into the required shape using heavy machines. Think of it as a very powerful, industrial version of a blacksmith shaping hot metal.
Machining at Pithampur: The forged metal is then cut, drilled, and shaped using computer-controlled machines so every part is made to precise measurements.
Finishing at Sanwer: The parts are finished, checked, and balanced so they can spin smoothly without unwanted shaking or vibration.
By controlling these steps itself, Adroit can keep a closer check on quality and make parts to specific customer requirements. That has helped it get a large share of its business from repeat customers.
Who Buys These Parts?
Adroit mainly sells its products to three types of customers:
Parts Distributors (62.45% of product sales): Wholesalers and retailers who supply replacement parts to mechanics, workshops, and spare-parts shops.
Tier-1 Suppliers (32.86%): Companies that make larger vehicle systems and supply them to automobile manufacturers.
Vehicle Manufacturers / OEMs (4.68%): Companies that directly manufacture vehicles such as trucks and tractors.
So, Adroit does not mainly sell to the person driving the truck. It sells the parts to businesses that either use them to build vehicles or sell them as replacement parts.
Where Does It Make Its Money?
This is where Adroit’s business gets interesting. It is primarily an export business, with more than 95% of its product sales coming from outside India across 32+ countries.
The US is its biggest export market, accounting for more than half of its export sales. Canada and Colombia are other important markets. So, even though Adroit manufactures everything in India, most of the money it earns comes from customers outside India.
How Does It Plan to Grow?
Adroit plans to increase how much it can produce by adding new forging presses and automated CNC machines, which are computer-controlled machines used to cut and shape metal very accurately. It also plans to use part of the money raised through its IPO to repay bank loans. In simple words, the company wants to make more parts with better machinery while reducing its interest costs by paying down debt.
For more details, visit here: https://adroitindustries.com
