LG Balakrishnan & Bros Ltd, founded in 1937 initially as a transport operator, has undergone a remarkable transformation over its 84-year journey to become a prominent manufacturer of automotive components. The company is a major producer of chains, sprockets, and metal-formed parts for automotive applications, operating under the renowned brand name 'ROLON'. LGB holds the distinction of being the first Indian company to supply timing chains to four-wheeler Original Equipment Manufacturers (OEMs) in India and is currently the largest timing chain exporter from India to the United States.
The company has meticulously built a strong market position within the automotive industry through decades of continuous innovation and a steadfast commitment to quality manufacturing. LGB holds the position of the number one OEM supplier of two-wheeler drive chains, dominating a significant market share in both the OEM and replacement markets. This market leadership is a testament to the company's technological prowess and its robust relationships with leading automotive manufacturers.
LG Balakrishnan & Bros operates through two principal business segments: Transmission and Metal Forming. The transmission segment, which constituted 79% of the business as of Q2 FY25, encompasses a wide range of products including chains, sprockets, tensioners, belts, and brake shoes. The metal forming segment is dedicated to the production of fine blanking for precision sheet metal parts, machined components, and wire drawing products. These are utilized for internal manufacturing needs as well as supplied to other chain manufacturing plants, spring steel suppliers, and umbrella manufacturers.
The company's comprehensive product portfolio is diverse and includes Automotive Chains, Sprockets, Chain Tensioners, Fine Blanking products, Precision Machining components, Automotive Belts, Scooter Parts, and Rubber Products. LGB also manufactures world-class fine blanked products and precision machined gears and parts, showcasing its multifaceted manufacturing capabilities across a broad spectrum of automotive components.
LG Balakrishnan & Bros boasts an extensive manufacturing network comprising 20 chain manufacturing plants, all of which are ISO/IATF certified, ensuring strict adherence to international quality standards. The company's manufacturing units are strategically located across Tamil Nadu, Pondicherry, Maharashtra, Uttarakhand, Karnataka, Haryana, and Rajasthan. This widespread manufacturing footprint allows LGB to efficiently serve its customer base across various regions while maintaining cost-effective operations.
The company's unwavering commitment to quality is demonstrably reflected in its certification standards and its capability to supply to leading automotive OEMs both domestically and internationally. The expansive manufacturing network also contributes to operational flexibility and risk mitigation through geographical diversification.
LG Balakrishnan & Bros has a market capitalization of approximately ₹4,029 crores as per the latest available data. The company reported a revenue of ₹2,578 crores and a profit of ₹302 crores for the recent financial period. In the first quarter of the latest financial reporting, the company recorded sales of INR 5,209.45 million compared to INR 3,925.52 million in the same period the previous year. Revenue stood at INR 5,244.24 million compared to INR 3,965.31 million year-on-year, and net income was reported at INR 582.86 million compared to INR 329.64 million.
Key financial highlights include:
- The company maintains an almost debt-free financial structure.
- It demonstrates a healthy dividend payout ratio of 20.6%.
- Promoter holding has shown an upward trend, increasing to 34.80% as of March 2025 from 33.76% as of June 2024.
The company is presently promoted by Mr. B. Vijayakumar. LG Balakrishnan & Bros' corporate structure includes subsidiaries such as LGB-USA INC., GFM Acquisition LLC, and GFM LLC. These subsidiaries signify the company's strategic international expansion initiatives, particularly its established presence in the United States market, where it is recognized as a significant timing chain exporter.
LG Balakrishnan & Bros is positioned within the Consumer Discretionary sector, specifically under the Automobile and Auto Components industry, with a focus on Auto Components & Equipments. It is a constituent of the BSE SmallCap, BSE Allcap, and BSE Consumer Discretionary indices. The company's stock is actively traded on both the National Stock Exchange (NSE) under the symbol LGBBROSLTD and the Bombay Stock Exchange (BSE) under the code 500250, offering liquidity and accessibility to investors across various market segments.
The company's robust market standing is further evidenced by its leadership in key product categories and its sustained ability to foster long-term relationships with major automotive manufacturers. Its strategic emphasis on quality, continuous innovation, and customer-centric service has enabled it to cultivate a sustainable competitive advantage within the highly dynamic automotive components industry.
