Shares of Timken India soared a massive 10% to Rs 3,210 per share in Thursday’s intra-day trade after the company announced plans to set up new manufacturing facility at Bharuch to manufacture Spherical Roller Bearings (SRB), Cylindrical Roller Bearings (CRB), and other components.
At 11:07 am, shares traded 8% higher at Rs 3,164, as against 0.21% decline in the benchmark index. In the past six months, the stock price of Timken India zoomed 71% as against 14% rally in the S&P BSE Sensex.
“The financing of capex will be done through internal accruals. The expected commercial production will begin from January 2025. The manufacturing plant at Bharuch, Gujarat wherein primarily Tapered Roller Bearings (‘TRB’) and its components are manufactured, another new facility will be set up in the same premises to manufacture SRB, CRB and components, which will enhance manufacturing capacity of the company,” the management said.
Moreover, the company said that the addition of new capacity would enhance manufacturing capacity. SRB and CRB, meanwhile, will be used in industrial applications, where there are heavy load and moderate speed like wind turbines, gearboxes, mining and construction equipment.
Timken is working at maximum capacity utilisation in India. The company, at present, does not manufacture SRB and CRB in India. SRB and CRB are mainly imported from Timken group companies across the world and sold in India.