Banco Products is one of the leading manufacturers of Gaskets, Radiators, Oil Coolers, and CJFS.

The company specializes in cylinder head gaskets. The cylinder head gaskets are produced in various design configurations, namely all metal, metal-layered, non-asbestos steel composite, asbestos steel composite, copper and graphite. The rubber and rubber composite material divisions can deliver various special grade custom formulated materials. Test facilities for critical gaskets include dynamometers, sealability jigs, high temperature ovens, standards room and a fully equipped physical and chemical laboratory. Cylinder head gaskets play a very major role in any modern diesel or petrol / gasoline engine for reducing exhaust emissions, improving power output and fuel efficiency. With increasing power outputs and shrinking engine weights, cylinder head design is becoming more complex.Banco is a leading supplier to OEM industry in India and has technical license agreements with leading western companies. It offer designs in carbon graphite, multi layer steel, metal elastomer and steel bonded with soft gasket facing materials.RadiatorThe radiators division has an installed capacity of 4,000 industrial radiators and 500,000 aluminum and copper–brass automotive heaters and radiators per annum. In-house engineering department is equipped with wind tunnel (certified by Central Mechanical Engineering Research Institute), vibration rigs, full scale salt spray chamber, pressure cycle test rig and CAD workstations for full scale product and tool design. R&D engineers work closely with OEM clients’ right from the initial stage in design of complete cooling system modules through to evaluation and validation of prototypes. The plants are equipped with state-of-the-art SPM production equipment from Europe and USA with a capacity to deliver both high volume quantities on timely basis for the automotive industry and low volume specialty heat transfer modules for industrial equipment. The company has a sophisticated aluminum plant with Nocolok brazing (C.A.B) oven cleaning, fluxing and other ancillary equipments. These facilities are controlled with online control and monitoring systems.Banco currently offers more than two dozen different core formats with the objective to deliver the most optimum cost/performance heat transfer solutions.
Radiators are designed and manufactured in plastic, steel and brass tanks depending on end applications in both cross flow and down flow configurations. Banco oil coolers are designed to be a qualified and integrated component of the engine cooling system. Banco works in close collaboration with clients’ design data provided on inlet/outlet temperatures, flow rates and operating pressures, and fitment data about oil coolers. It also consider factors such as operating environment, external dimensions, placement of connections, fastening points, mechanical loads and other critical parameters to arrive at most optimum cost effective design solution.
All the oil coolers use high thermal cooling performance fins and tabulators, giving a competitive edge when comparing various proposals of price against cooling performance. Oil coolers are offered in bar and plate, drawn cup and extruded tube design varieties. Banco also offer wire wound designs with copper wire on tube type spiral technology.Banco offers complete oil cooler / intercooler / radiator assemblies in various sizes and design configurations (Copper / Brass, Brazed Aluminum - Bar & plate) to meet all of below the bonnet heat transfer requirements. As part of regular OEM development program Banco custom designs Radiator / Intercooler assemblies for Heavy Commercial Vehicles, Earth-moving Off-Road equipment and Material Handling equipment. Banco Products manufactures complete units of intercoolers and replacement intercooler cores for cooling charged air from turbo chargers using ‘Nocolok’ brazing technology. It also offers intercooler core matrix designs which offer least pressure drop to ambient ram air as well as charged air which are critical parameters for optimizing radiator cooling performance within the limits of shrinking ‘envelope’ space available for engine cooling components in modern vehicles. The plant can cater to low and medium volume production runs using highly flexible production manufacturing practices.Banco offers both extruded tube as well as welded tube with inserted turbulator intercooler core design. Plate and bar intercooler cores are also available for very thick core specification.Banco also manufactures compressed jointing sheets for various sealing media like steam, oil, acids, alkalies and alcohols etc.It covers a complete range of automotive and industrial jointing applications in thickness ranging from 0.25 mm to 5.00 mm sheets.
The net sales increased 26% from Rs.1361.01 mn in FY05 to Rs.1726.75 mn to FY06.EBITDA margins were at 12% for full year and Net profit was at 127.1 mn in FY06 against 105.39 mn FY05. The EPS for full FY06 was at 18.8 while H1 FY07 EPS was at 18.96.On DCF basis the price of the share looks fairly valued at Rs.400 to Rs.450.

The company has planned to double its aluminum radiator production by next financial year 2006-07 to cater the European market demand. The company will include more 4,80,000 units per annum and will compete the low-priced Chinese and Korean aluminum radiator manufacturers, reports Business Standard. The company will set up a 100 per cent export oriented unit (EOU) with an investment of Rs 20 crore out of which rupees eight crore has been financed by banks. The EOU will be operational by December.
The company holds 20 per cent market share in automobile industry with three clients – Mahindra & Mahindra Limited, Ashok Leyland and Tata Motors, for its copper brass radiators. The company annually produces 3 lakh and 4,80,000 units of copper brass radiators and aluminum radiators respectively.
The company will currently market in Africa, Middle East, Europe and South East Asia, according to sources. Banco exports 1,80,000 units annually to Europe. Further it has installed and commissioned Control Atmospheric Brazing (furnace) with an investment of rupees four crore which will led to surge in low cost output.
In power generation, Banco`s market share has increased substantially to 50 per cent. It will also launch a new product in multi-layer steel gasket series very soon. The company produces 37 million gaskets per month with 30 per cent domestic market share while it has production capacity of 60 million gaskets per month.



CMP Rs 265.9 (4 months)