“The effect of BS-VI, with respect to value addition, is yet to reflect in revenues and we expect this to be seen in the next two years. This will lead to an increase in realizations due to additional content of 25-40 per cent. In the case of exports, we believe that due to reduction in investments by European and North American foundries and China’s rise in labour costs should benefit India, and in turn Craftsman from likely outsourcing of foundry and machine operations, LKP Securities said.
A total of 53 per cent of the South India-based firm s revenues come from critical powertrain components; aluminum products account for 21 per cent revenues.
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