Sterling Tools Limited (STL) was incorporated on 7 June 1979 and stands as a prominent player in India's automotive fastener industry. The Company is engaged in manufacturing and sale of high tensile (HT) cold forged fasteners mainly for automobiles. With over four decades of operational excellence, STL, which started its commercial production in 1981, has increased its installed capacity in stages over the years to a level of 7500 MTPA as on 2000-01.
The company has established itself as a trusted supplier to major automotive manufacturers across multiple segments. STL manufactures cold forged, hi-tensile fasteners and supplies to all major auto OEMs across Passenger Vehicles (PVs), Commercial Vehicles (CVs), Two-Wheelers (2Ws), Construction, and Farm Equipment segments. It is one of the leading suppliers in India with a client base that extends across India, USA, Europe, South America, and the Middle East.
Sterling Tools has created a strong market position in the automotive fastener industry with an impressive product portfolio. They have a wide product range of over 2000 types of fasteners from 5 mm to 24 mm diameter. The company's commitment to quality is evident through its certifications, as they obtained ISO 9002 and QS 9002 certification in 1998 and 1999–2000 respectively.
The company serves diverse automotive segments and has built strong relationships with leading manufacturers. The company focuses on supplying to diverse segments such as two-wheeler, four-wheeler, passenger transport, goods transport, tractors, and farm equipment. Their clientele includes Eicher, Escorts, Bajaj Auto, Maruti Udyog, Hero Honda, and Telco. STL has created a niche for itself as the largest supplier of HT fasteners to Hero Honda, and the second-largest supplier to Maruti, Bajaj Auto, and TELCO.
Sterling Tools is strategically positioning itself in the growing electric vehicle market. The Company commissioned the first EV component manufacturing plant in Faridabad in 2020-21. Upon the expansion, the Company's annual production has increased from 300,000 Motor Control Units (MCUs) to 600,000 MCUs in 2023.
The company has recently entered into significant partnerships to strengthen its EV segment presence. Sterling Tools Ltd has signed a technology licensing agreement with AEM to manufacture magnet-free traction motors for EVs, boosting local production. Anil Aggarwal, Chairman, Sterling Tools, stated, "Sterling's foray into rare earth magnet-free motors demonstrates the Group's commitment to being a technology leader and an industry pioneer. We are expanding beyond MCUs to being a complete solution provider and meeting the EV Industry's growing demand for advanced technology. EV sub-systems are being increasingly consolidated into multifunction units and Sterling will also offer our customers integrated motor and controller solutions. The diversification into Rare Earth Magnet-Free motors is in line with Sterling's ambition to develop Powertrain expertise to serve the Indian Auto Industry."
Sterling Tools has demonstrated resilient financial performance with a steady growth trajectory. For the fiscal year ended March 2025:
- Revenue: ₹1,026.30 Crore (up 10.12% from ₹931.97 crore in FY2024)
- Profit: ₹58.29 Crore (up 5.27% from ₹55.37 crore in FY2024)
- Market Capitalization: ₹1,331 Crore (as of recent data)
- Dividend: The Board of Directors recommended a final dividend of ₹2.5 per equity Share (125%) for FY2025 at its meeting held on 13 May 2025.
- Return on Equity (ROE): Low return on equity of 12.4% over the last 3 years.
The company maintains strong promoter ownership with slight recent adjustments. Promoter holding in Sterling Tools Ltd has gone down to 65.02% as of Mar 2025 from 65.77% as of Jun 2024. The management team is led by experienced professionals, with Mr. Atul Aggarwal - Managing Director, and Mr. Pankaj Gupta - CFO, among the key leadership positions.
Sterling Tools has integrated sustainability practices across its operations. The company has ingrained sustainability across its business operations and aims to contribute in a socially, ethically, and environmentally responsible way. The company continues to strengthen its financial position through strategic initiatives and market expansion. They have strengthened their financial standing owing to their experience, their longstanding relationships with OEM manufacturers, and the recent foray into the EV segment.
The company's strategic focus on electric vehicle components and expansion into international markets positions it well for future growth opportunities. Further efforts are ongoing to penetrate export markets in the UK, Germany, France, Belgium, and Italy, indicating the company's commitment to global expansion while maintaining its strong domestic market presence.
