RSB Group celebrates five decades of innovation and expansion, aiming for Rs 10,000 crore revenue and further global reach through strategic partnerships, sustainable practices, and investments in electric vehicle technology and new market sectors.
19 Nov 2024 | 2698 Views | By Autocar Professional Bureau
RSB Group, a leading automotive component manufacturer in India, marks its 50th anniversary, reflecting on a history of growth, resilience, and innovation. Founded by brothers R.K. Behera and S.K. Behera in 1974 with an initial investment of Rs 2 lakh, including a Rs 20,000 state subsidy for technocrats, the company ...
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RSB Group, a leading automotive component manufacturer in India, marks its 50th anniversary, reflecting on a history of growth, resilience, and innovation. Founded by brothers R.K. Behera and S.K. Behera in 1974 with an initial investment of Rs 2 lakh, including a Rs 20,000 state subsidy for technocrats, the company has expanded to become a Rs 3,000 crore industry player. From a small team of 15 in 1975, RSB now employs over 6,000 people.
As part of its future growth strategy, RSB plans to exceed Rs 10,000 crore in revenue within the next 3-4 years, ahead of a potential IPO. A strategic partnership with Bain Capital, which invested in the company recently, is expected to play a key role in supporting both organic and inorganic growth.
This collaboration will focus on expanding operations, particularly in international markets such as Mexico. Currently, RSB operates 17 manufacturing facilities in India, two overseas plants, and a technology subsidiary, I-DESIGN Engineering Solutions Ltd. in Pune. The company serves a range of domestic and international clients, including Tata Motors, Ashok Leyland, Mahindra & Mahindra, John Deere, Volvo, Renault Nissan, JCB, Ford, Fiat, Isuzu, and Cummins.
RSB is a prominent global manufacturer in the automotive vertical, producing propeller shafts and various types of axles, including front axles, trailer axles, tractor axles, dummy axles, and axle beams. The company also manufactures gearboxes for small commercial vehicles, along with fully finished gears, shafts, hubs, and sleeves.
Its backward integration facilities for castings and forgings ensure quality control over these components. In the Construction and Mining Infrastructure (CMI) segment, RSB manufactures heavy fabrications and aggregates, such as frames, arms, booms, and buckets for excavators, backhoe loaders, and front-end loaders.
Reflecting on the company’s 50-year milestone, R.K. Behera, Chairman of RSB Group, commented, “Looking back at RSB’s journey, I am grateful for the path we have taken. This celebration is not just about the milestone itself but about the humble beginnings, the dedication, and the shared values that have brought us here.
Despite facing early struggles such as limited resources and financial challenges, with my brother SK by my side and the dedication of our employees, we have persevered. The growth we’ve achieved is a testament to their resilience. As we look ahead, we aim to continue these efforts with a focus on sustainability and passing on a lasting legacy that will impact our industry and communities.”
RSB’s growth gained momentum after securing a major contract with Tata Motors, leading to approximately 75% year-on-year growth until 1990, and a consistent 25% CAGR thereafter. As part of its ongoing growth strategy, RSB is also investing in the electric vehicle (EV) market.
In collaboration with an Israeli company, RSB is developing EV components, including e-axles, motors, and controllers. Over the next five years, RSB plans to derive 25% of its revenue from EV components, while 75% will still come from traditional automotive parts.
S.K. Behera, Vice Chairman of RSB Group, added, “From our humble beginnings, RSB has grown to become an industry leader through strategic vision, resilience, and a focus on excellence. The commitment and hard work of our employees have been integral to our success.
As we enter new markets, including the EV sector, we remain focused on upholding our values of integrity and quality. We aim to continue to set new standards for the industry and create lasting value in all our markets.”
As RSB continues to grow, the company is exploring inorganic growth opportunities, with decisions expected in the coming months. Additionally, RSB is investing Rs 70-80 crore in its in-house design, testing, and validation facility. The company is also considering expansion into high-potential sectors such as defence, railways, and telecommunications. With these investments and a continued focus on cutting-edge engineering and sustainability, RSB is poised for further growth and impact in the years ahead.