Logo of Saudi Parts Center
Saudi Parts Center (SPC), which has a capital of SAR 30 million, is planning a direct listing for its shares on Nomu Parallel Market, as it recently announced the registration document and set a price guidance of SAR 49/share.
Established in Riyadh in 1988 as a limited liability company, SPC operates in three segments, as shown in the following table:
|
Saudi Parts Center’s Segments |
|
|
Segment |
Details |
|
Heavy equipment parts sales segment |
Sales of parts for earth-moving equipment, electric generators and agricultural machinery include Caterpillar, Komatsu, Cummins and Volvo brands |
|
Truck parts sales segment (commercial vehicles) |
Includes sales of heavy truck parts |
|
Turbocharger sales and maintenance |
Includes sales and maintenance of turbocharger units and parts for all brands and types of turbochargers for heavy equipment, forklifts, air compressors, generators, heavy and light trucks, buses, passenger cars and marine engines |
Heavy equipment parts segment accounts for the largest share of the company’s gross sales, reaching more than 70% by the end of H1 2021, at nearly SAR 27 million.
Below are the company’s sales by segment:
|
Sales by Segment |
||||||
|
Segment |
Dec. 31, 2019 |
Dec. 31, 2020 |
June 30, 2021 |
|||
|
Sales (SAR mln) |
Percentage of Total (%) |
Sales (SAR mln) |
Percentage of Total (%) |
Sales (SAR mln) |
Percentage of Total (%) |
|
|
Heavy equipment parts sales segment |
48.5 |
68.8 % |
52.3 |
67.4 % |
27.0 |
70.3 % |
|
Truck parts sales segment (commercial vehicles) |
9.2 |
13.0 % |
14.0 |
18.0 % |
6.0 |
15.7 % |
|
Turbocharger sales and maintenance |
12.8 |
18.2 % |
11.4 |
14.6 % |
5.3 |
13.9 % |
|
Total |
70.4 |
100 % |
77.6 |
100 % |
38.3 |
100 % |
According to the company's estimates and available data, the size of the spare parts market in Saudi Arabia in 2020 for heavy equipment, commercial vehicles and automobiles exceeded SAR 26 billion.
Heavy equipment parts account for nearly SAR 5 billion, while spare parts for commercial vehicles and automobiles market is SAR 21 billion.
SPC looks forward to growing its market share over the next five years in various parts, including heavy equipment parts and commercial vehicles, by shifting the business model using modern technology to the multi-channel model, which will allow easy connectivity and better service to a larger segment of customers. The company also aims to grow by acquiring other sector’s companies.
The parts company also disclosed intentions to make more investment in the remanufacturing of spare parts for equipment, commercial vehicles and cars, drawing on its current expertise in repairing and maintaining the turbocharger.
The global auto parts remanufacturing market in 2018 stood at $53 billion with an expected compound annual growth rate of 7.1% to $91 billion by 2026-end.
SPC said that one of the most important aspects of the competitive strengths and advantages it has is that it is wide spread in most regions across the Kingdom through 10 major points of sale, exclusive and non-exclusive distribution rights for products with a strong presence in the Saudi market, the leadership in the maintenance and repair of the turbocharger, a strong technical infrastructure, in addition to integrated policies and procedures covering the entire value chain.
The company’s strategy includes a number of elements as indicated in the following table:
|
Elements of SPC’s Strategy |
|
|
Element |
Details |
|
1 |
Taking over of a larger share of the sales of earth-moving equipment parts through acquisitions of existing companies |
|
2 |
Expansion of service and repair work for diesel engines, their equipment and parts consisting of turbochargers, fuel pumps, fuel injectors, track and undercarriage |
|
3 |
Acquisition of a larger stake in the heavy truck sector |
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