Menon Lands GM Engine Bearing Order

Menon Lands GM Engine Bearing Order Menon Bearings Ltd. (India; BSE: 523828) announced it has landed a major order to supply General Motors with engine bearings and bushings. Deliveries are scheduled to began this month; it is reportedly the first order from the Indian manufacturer by General Motors. In all, deliveries in this phase will total more than 2 million bearings and bushings by the end of 2007. To meet GM's volume requirements, Menon said it is investing approximately Rs 30 million (USD $645,000) in new equipment and facilities. Founded in 1992, Menon Bearings manufactures a variety of journal bearings, bimetal engine bearings, bushings, ball bushings and thrust washers. The company's products are targeted to all types of automotive and truck engines, two-stroke two-wheeler engines, along with compressors, and other similar industrial products. Menon's engine bearing and bushing customers include a wide swath of the Indian auto and truck industry, and it is making inroads in Europe and North America. Exports currently account for 35% of Menon Bearing sales. Menon established a dedicated warehouse in Maryland to supplying camshaft bearings to Mack trucks. A similar facility is in the works to support ongoing orders from Cummins, while the General Motors contract will soon require a similar dedicated warehouse. Publicly traded, Menon Bearings is 70% owned by the Menon Group. Other companies in the Menon Group manufacture pistons, piston rings, automobile engine blocks and heads, alloy castings, manufacturing software, and export products from India to other countries. Overall, approximately 30% of Menon Group production is exported, primarily to Europe. Menon Bearings recently reported fiscal year 2006 sales (ended March 31, 2006) of approximately Rs 246 million ($5.3 million), with net profit of Rs 20.4 million ($439,000).