In an exclusive interaction with Rajesh Rajgor, Krishnakumar Srinivasan, Managing Director and CEO of Shriram Pistons and Rings (SPRL), shared insights into the company’s journey through a transformative 2024. The year, while marked by its challenges, has also been a period of significant growth and innovation for SPRL, highlighting its resilience and forward-thinking strategies.
Shriram Pistons and Rings (SPRL) has firmly established itself as a leader in the automotive industry, demonstrating exceptional resilience and adaptability in a constantly changing market. The company has successfully navigated challenges by focusing on continuous innovation and expanding its offerings across various sectors. SPRL has not only enhanced its core product portfolio but also embraced emerging technologies, staying ahead of the curve in an increasingly competitive landscape. A key factor behind its success is its strategic approach to diversification, which includes expanding into new verticals and exploring alternative powertrains such as electric and hybrid technologies.
The company’s commitment to advanced research and development (R&D) has been instrumental in driving its growth, ensuring that its solutions align with the latest industry trends and regulatory requirements. Furthermore, SPRL has forged strong partnerships with leading global players, which have bolstered its technological capabilities and expanded its reach. These strategic collaborations, combined with the company’s forward-thinking approach, have solidified SPRL’s position as a resilient and innovative player in the ever-evolving automotive sector.
Current Business Performance
SPRL has navigated a mixed market landscape in 2024, achieving growth beyond 2023-24 levels through a combination of targeted market expansions, strategic acquisitions, and operational efficiencies. This multifaceted approach has enabled the company to not only surpass past performance but also lay a strong foundation for its ambitious future goals. “Our aim has always been to outgrow the market, and I feel we are doing well in that area,” says Srinivasan. The company has witnessed varied performances across market segments. While the car and commercial vehicle sectors saw moderate or flat growth, the two-wheeler industry experienced a remarkable 13–15% surge, nearing 20 million units in sales.
SPRL’s core businesses—piston, piston rings and engine valves—have demonstrated exceptional resilience. The company’s strategic focus on market expansion has paid off, with new contracts and a notable increase in market share. “The first two quarters showed we outgrew the market by nearly 100%, which strengthens our confidence to maintain double-digit growth,” he shares. This performance is a testament to SPRL’s ability to adapt and thrive amidst industry fluctuations.
Diversification: Exploring New Frontiers
As part of its diversification strategy, SPRL has made strategic moves into two rapidly growing verticals: plastic precision injection molding and electric motor-controller systems. These initiatives showcase the company’s commitment to innovation and its ability to anticipate industry shifts.
The plastics division has been significantly strengthened by the acquisition of TGPEL, a Timex Group company specializing in precision injection molding, propelling combined revenues from SPR Takahata and TGPEL Precision Engineering beyond ₹500 crore. “We started with SPR Takahata for our plastic precision injection molding, and with TGPEL now part of SPRL, we are well-positioned to lead the plastics industry,” Srinivasan shares.
Simultaneously, SPRL has embraced the transition toward electric and hybrid technologies by venturing into electric motor-controller systems through its dedicated subsidiary, SPR EMFI Innovations. This move demonstrates the company’s adaptability in aligning with the evolving needs of the mobility sector while further diversifying its portfolio.
Strategic Partnerships for Advanced Powertrains
SPRL’s forward-thinking investments in advanced powertrains reflect its vision of being present across all energy solutions—diesel, gasoline, biofuels, hydrogen, and electric. Collaborations with global leaders such as Kolbenschmidt, Riken Corporation, Fuji Oozx and Honda Foundry, have enabled the company to leverage cutting-edge material alloys and coatings critical for next-generation engines and hybrid applications. “Our focus is on being present in all powertrains—diesel, gasoline, biofuels, hydrogen, and electric,” Srinivasan states.
The company’s venture, SPR EMFI Innovations, further underlines its leadership in electric and hybrid technologies, driving the development of motor and controller systems tailored to EVs. To support this diversification, SPRL has established state-of-the-art facilities in Coimbatore and Indore, focusing on both legacy products and innovative solutions for emerging powertrains. With vertical integration as a cornerstone, SPRL ensures fully localized and competitive offerings that meet the dynamic demands of the global mobility landscape. “We are ensuring vertical integration to remain competitive, delivering fully localized, state-of-the-art solutions,” Srinivasan emphasizes.
These strategic moves not only reinforce SPRL’s competitive edge but also position it as a innovator in adapting to the mobility sector’s ongoing transformation.
A Thriving Aftermarket Ecosystem
SPRL’s aftermarket divisions—USHA and SPR Auto Components & Assemblies—continue to serve as vital pillars of the company’s growth, contributing 18–20% of overall revenue. With a robust network of over 1,200 partners spanning retail and re-borer outlets, these divisions ensure comprehensive support to customers while extending the lifecycle of vehicles.
“Our partnerships, right up to retail and re-borer outlets, have been the hallmark of our aftermarket success,” Srinivasan emphasizes. By consistently delivering value through quality products and solutions, SPRL reinforces its leadership in the aftermarket segment, enhancing utility and reliability for its customers.
Advancing R&D for Future Mobility
Innovation is a cornerstone of SPRL’s strategy, supported by advanced R&D capabilities that address regulatory and sustainability demands. Recent achievements include the development of hydrogen-compatible engine components and advanced biofuel systems, both of which are undergoing rigorous testing with leading OEMs.
These initiatives not only meet but anticipate emerging regulatory requirements, solidifying SPRL’s reputation as an industry innovator. The company has made significant strides in developing solutions for ethanol, CNG, H-CNG, and hydrogen technologies. “We are working on cutting-edge solutions, from hydrogen ICE engines to biofuel blends, which are being tested by OEMs,” he shares. This focus on hybrid engines and EV applications demonstrates SPRL’s commitment to creating future-ready solutions.
SPRL’s emphasis on R&D extends to collaborations with customers from the drawing board stage, ensuring that its innovations align with market needs. The company’s R&D centers in Ghaziabad and other facilities are hubs of innovation, driving advancements across its portfolio. “We work closely with customers from the drawing board stage, leveraging partnerships to stay ahead of the curve,” Srinivasan reveals.
Sustainability and Operational Excellence
Sustainability is integral to SPRL’s operations, setting a benchmark in the industry with initiatives that not only meet but often exceed environmental standards observed by competitors. The company’s extensive solar energy use, water positivity efforts, and advanced heat recovery systems highlight its leadership in adopting eco-conscious practices. This comprehensive approach highlights SPRL’s ambition to lead the industry in sustainability while aligning its operations with global benchmarks.
The company has implemented several initiatives to address environmental concerns, including solar energy adoption, water positivity, and advanced heat recovery systems. “At our Ghaziabad factory, nearly 30% of our power needs are met by solar energy, and we’ve taken similar steps across other facilities,” Srinivasan shares. These measures reflect SPRL’s commitment to environmental responsibility, further reinforced by the use of eco-friendly materials and adherence to stringent sustainability assessments.
In manufacturing, SPRL has embraced robotics and AI to enhance precision and efficiency. “Many of our manufacturing cells are fully integrated with robotics, ensuring minimal human interference while enhancing traceability,” he emphasises. These advancements enable SPRL to achieve micron-level accuracy, essential for high-stakes components, while optimizing costs and maintaining competitive pricing structures.
Showcasing Excellence at Bharat Mobility Expo
The upcoming Bharat Mobility Expo 2025 will be a platform for SPRL to showcase its extensive capabilities. The company’s pavilion will highlight products designed for HCNG, CNG, biofuels, and electric applications, demonstrating SPRL’s precision and depth in manufacturing. “Our pavilion will highlight the precision and depth of our manufacturing, with products achieving micron-level accuracy,” Srinivasan shares. This event underscores SPRL’s relentless pursuit of innovation and its ability to meet evolving customer demands.
As SPRL navigates the automotive industry’s dynamic landscape, it remains steadfast in balancing its legacy ICE operations with investments in emerging technologies. “The internal combustion engine (ICE) is not going anywhere, and we anticipate a cautious 5% CAGR over the next decade, leading to significant growth even with a 30% penetration of EVs,” he states. This dual strategy ensures that SPRL continues to lead in both traditional and future-focused segments.
With over ₹600 crores invested in new acquisitions and ₹500 crores into its legacy business, SPRL is well-equipped to sustain its growth momentum. “With our growth engine, SPR Engenious Ltd (SEL), we’re de-risking and preparing for the future,” he explains. These investments, coupled with a commitment to innovation and sustainability, position SPRL for long-term success.
A Forward-Looking Vision
Despite market fluctuations, Srinivasan expresses optimism about India’s economic trajectory and the automotive sector’s potential, citing key economic indicators such as rising infrastructure investments and supportive government policies like the PLI schemes as critical drivers of this growth.
“With the government’s focus on infrastructure and state-level development, growth is inevitable,” he affirms. SPRL’s robust investment strategy and dedication to customer-centric solutions ensure that it remains at the forefront of the industry’s evolution.
“Growth is a given, and we will continue to grow with our customers,” concludes Srinivasan, encapsulating SPRL’s forward-looking vision and unwavering commitment to innovation, sustainability, and excellence.
