ASK Automotive to outgrow industry by at least 5%-7%: CMD Kuldip Rathee

Rathee also mentioned his list of marquee clients which includes two wheeler giants such as TVS and Honda among others.

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26 Aug, 2025 12:21

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ASK Automotive, the largest manufacturer of brakeshoe and advanced braking systems for two-wheelers in India, opened for subscription on November 7 with a Rs 834-crore public issue.

Kuldip Singh Rathee, the Chairman and Managing Director of ASK Automotive, talked at length about the company's performance in the last two years and its plans for the future in an interview with CNBC-TV18.

Also Read: ASK Automotive IPO subscribed 19% on debut, retail portion booked 31%

Talking about topline growth the automotive component manufacturer has seen between FY21  and FY23, Rathee said that the growth witnessed in the last two years has been an aberration.

"Last two years have been an aberration in all respects, so some of it is contributed by the rise in commodity prices. So the real growth is little less than this, around 18 percent not 28 percent but that also reflects in the EBITDA margin percentages, because you'll see less EBITDA margin percentage but that's our cost plus margin, so cost plus margin if the commodity prices go up the margin remaining the same the percentages tend to look down. So that's an aberration," Rathee said.

Talking about the company's aim to outgrow the industry, the MD predicts that the company is likely to outgrow the industry by at least 'five to seven' percent.

Also Read: ASK Automotive floats Rs 834-crore IPO, brokerages offer bullish views

The MD also talked at length about the effect of Covid and changes in Commodity prices on the company and how the company plans to deal with it.

"We have been totally hedged by the customer through the quarterly lag and the half yearly lag and but after Covid there was a big spurt in the commodity prices, our main commodity aluminium that increased from 128 rupees to 235 and in that abrupt increase we incurred some losses. Now we have revised our contacts to the customer and now we are hedged back to back rather than quarterly or six months," Rathee said.

When asked about the market share the company has in the automotive space, the MD stated a CRISIL report, which mentions that the company has a 50 percent market share in India. Rathee also mentioned his list of marquee clients which includes two-wheeler majors such as TVS and Honda among others.

"As CRISIL has mentioned we are enjoying 50 percent market share of this country. In all the three segments we are enjoying that market share. There are three places our brakes and friction material goes one is the OEM (Original Equipment Manufacturer) then the OES (Original Equipment Supplier) and the independent aftermarket and all the three segments we enjoy the majority share," Rathee said.

Talking about the company's capital expenditure plans, the MD said that ASK Automotive has already invested Rs 300 crore in a new plant in Rajasthan's Karoli district. Rathee added that the company doesn't plan to do any further capital expenditure, but has been expanding its exports business with non-automotive clients.

"Our asset turnover ratio is the best in the industry that's around 2.5 percent . So we are sorted for the next one one and a half years of growth without doing any further capex. Last five years our focus has been exports starting very small, we have grown to a level of 90 crores which we did last year. We got all the prestigious non-automotive customers also like Fortune 100 company Stanley, Black+Decker in the power tools segment and Polaris in the all terrain vehicle segment," Rathee said.