Swaraj Engines Limited 2023

Swaraj Engines Limited (SEL) was started in 1986 in technical and financial collaboration with Kirloskar Oil Engines (KOEL) for manufacture of Diesel Engines.

SEL is a joint venture between erstwhile Punjab Tractors (PTL), which has since been merged with Mahindra & Mahindra (M&M) and Kirloskar Oil Engines. (KOEL). Originally set up to manufacture engines for PTL, in recent years SEL has also been a supplier of hi-tech engine components to Swaraj Mazda (SML).

Since start of commercial operations in 1989-90, SEL has supplied around 3,18,000 engines for fitment into Swaraj tractors. SEL engine business currently constitutes some 93% of the company product revenue. The balance 7% represents value of hitech engine components being supplied to SML for assembly of commercial vehicle engines.

SEL financial performance has been exceptional right from the beginning. Its operations have been characterised by a lean organisation structure, continuous improvement in process efficiencies and optimised resource utilisation.

Swaraj Engines Limited manufactures and sells diesel engines, diesel engine components, and spare parts for tractors in India. The company was incorporated in 1985 and is based in Mohali, India. Swaraj Engines Limited is a subsidiary of Mahindra & Mahindra Limited.

1. Business Overview: Understand the company’s core business, its products, services, and the industry it operates in. Look for competitive advantages and market position.
2. Financial Statements: Review the company’s financial statements, including the income statement, balance sheet, and cash flow statement, for the past few years. Analyze revenue growth, profitability, margins, and cash flow trends.
3. Revenue and Profitability: Analyze the company’s revenue growth and profitability over the years. Look for consistent growth and increasing profit margins.
4. Debt and Liquidity: Check the company’s debt levels and liquidity position. A company with manageable debt and sufficient liquidity is generally more stable.
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10. Economic and Industry Factors: Evaluate the impact of economic and industry-specific factors on the company’s performance.

Products of Swaraj Engines Limited

1. Diesel Engines: Swaraj Engines manufactures a range of diesel engines that are used in various applications, including tractors, commercial vehicles, and industrial equipment. These engines are designed to provide power, efficiency, and durability.
2. Tractor Engines: The company’s tractor engines are a crucial component of Swaraj Tractors, which are also manufactured by the Mahindra Group. Swaraj Tractors are known for their performance and reliability in the agricultural sector.
3. Genset Engines: Swaraj Engines also produces diesel engines used in generating sets or gensets. Gensets are commonly used as backup power sources in various settings, including residential, commercial, and industrial applications.
4. Engine Components: Apart from complete engines, Swaraj Engines manufactures and supplies various engine components. These may include cylinder blocks, cylinder heads, crankshafts, camshafts, pistons, and other critical engine parts.

Milestones:

1. Establishment: Swaraj Engines Limited was established in 1985 as a joint venture between Punjab Tractors Limited (now known as Swaraj Tractors) and Kirloskar Oil Engines Limited.
2. Engine Production: The company commenced production of diesel engines in 1986 at its manufacturing facility in Chandigarh, India.
3. ISO Certification: Swaraj Engines received ISO 9001:2000 certification for its quality management systems in 2003.
4. Exports: The company began exporting engines to various international markets, contributing to its global presence.
5. Capacity Expansion: Swaraj Engines expanded its production capacity over the years to meet the growing demand for its engines.
6. Mahindra & Mahindra Subsidiary: In 2007, Mahindra & Mahindra Limited, a leading Indian automotive manufacturer, acquired a majority stake in Swaraj Engines Limited, making it a subsidiary of Mahindra & Mahindra.
7. ISO 14001 Certification: The company received ISO 14001 certification for its environmental management systems, reflecting its commitment to sustainable practices.
8. Sustained Growth: Swaraj Engines demonstrated consistent growth and financial performance over the years, establishing itself as a key player in the diesel engine segment.

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