EVs eliminate ~80% of moving parts in traditional ICE vehicles (e.g., pistons, crankshafts, gearboxes), which are key applications for Wendt’s super abrasives.
However, the EV landscape brings in new opportunities in the following forms:
a) New Applications in EV Components
Electric Motors: Precision grinding of rotor shafts, stators, and bearings.
Lightweight Materials: Grinding composites (e.g., CFRP) and high-strength alloys used in EVs.
Power Electronics: Precision tools for semiconductor substrates and connectors.
b) Government-Led Localization Push
India’s push for domestic EV component manufacturing (e.g., PLI schemes) creates demand for high-precision tools. Wendt’s expertise in abrasives positions it to support this shift.
c) Global EV Supply Chain Integration
Wendt’s subsidiary in Thailand and ownership of the global "Wendt" brand could help it supply EV manufacturers in Southeast Asia and Europe.
Wendt's strong R&D foundation, global brand ownership, and agile management position it to navigate this transition effectively, albeit with short-term volatility.
On the second question, I think one of the biggest Optionalities is either getting merged in CUMI or CUMI transferring its Abrasive business to Wendt.
I have one more query on this. Basically i am making an attempt to assess how much Wendt India stands to gain (potentially) by acquiring trademarks & brands in 40 countries from Wendt GmbH.
Few points related to my understanding:
1. Wendt India drives ~80% of their revenue from consumables & components
2. Wendt GmbH is expected to have annual revenue of $60-100 mn. (reverse engg from employee strength & per employee productivity estimate of Wendt globally).
With brand rights for 40 countries moving to Wendt India, can we assume that this entire business of Wendt GmbH would be there for Wendt India to tap into. Further would it be to assume that 80% of this revenue would be of recurring (because of consumables & components).
Amazing insights..Story well told
Thank you
🙏
Very Detailed Notes on the Company. Thank you sir.
hi Ankit,
It is indeed a very detailed and deep note...Liked the immaculate coverage of relevant areas in yoru note.
Have two queries:
1. Since company draws sizeable revenue from auto sector, how can graduation of auto sector to EV impact Wendt in medium to long term?
2. Also apart from access to global geographies for Wendt India, do you see any Optionalities for the company?
Thanks, Saurab,
Glad you found value.
EVs eliminate ~80% of moving parts in traditional ICE vehicles (e.g., pistons, crankshafts, gearboxes), which are key applications for Wendt’s super abrasives.
However, the EV landscape brings in new opportunities in the following forms:
a) New Applications in EV Components
Electric Motors: Precision grinding of rotor shafts, stators, and bearings.
Battery Systems: Machining lithium-ion battery casings, thermal management components.
Lightweight Materials: Grinding composites (e.g., CFRP) and high-strength alloys used in EVs.
Power Electronics: Precision tools for semiconductor substrates and connectors.
b) Government-Led Localization Push
India’s push for domestic EV component manufacturing (e.g., PLI schemes) creates demand for high-precision tools. Wendt’s expertise in abrasives positions it to support this shift.
c) Global EV Supply Chain Integration
Wendt’s subsidiary in Thailand and ownership of the global "Wendt" brand could help it supply EV manufacturers in Southeast Asia and Europe.
Wendt's strong R&D foundation, global brand ownership, and agile management position it to navigate this transition effectively, albeit with short-term volatility.
On the second question, I think one of the biggest Optionalities is either getting merged in CUMI or CUMI transferring its Abrasive business to Wendt.
Regards,
Ankit
Hello Ankit,
I have one more query on this. Basically i am making an attempt to assess how much Wendt India stands to gain (potentially) by acquiring trademarks & brands in 40 countries from Wendt GmbH.
Few points related to my understanding:
1. Wendt India drives ~80% of their revenue from consumables & components
2. Wendt GmbH is expected to have annual revenue of $60-100 mn. (reverse engg from employee strength & per employee productivity estimate of Wendt globally).
With brand rights for 40 countries moving to Wendt India, can we assume that this entire business of Wendt GmbH would be there for Wendt India to tap into. Further would it be to assume that 80% of this revenue would be of recurring (because of consumables & components).