Banco Products is into manufacturing of gaskets and radiators. Roughly 25% of its sales come from gaskets and 75% from radiators. This was not always the case. Apparently they have proactively shifted away from gaskets and towards radiators.

Gaskets appears to be a classic case of a commodity where the company enjoys absolutely no pricing power. Only way they have increased sales even in this segment has been through volume growth.

Radiators has some degree of pricing power. But that's a more recent phenomenon. Over the last 10 years, there has been a technological shift in this segment. Indian manufacturers were manufacturing Copper/Brass alloy radiators. These had gone out of fashion in the west a long time ago and gradually even Indian automobile manufacturers also started shifting to Aluminium alloy radiators. These are light-weight and more cost-efficient ones. Around 2003 onwards, Banco, through some in-house R&D and some external support, adopted this technology. This change has boosted its sales greatly, specifically its exports. There is a sister company by the name Banco Aluminium. Don't know if Banco Products enjoys the fruits of synergy in terms of its cost of raw material (aluminium).

The management has fairly good ability at adapting to changing business environment and has put its 40+ years in this business to good use. I am yet to analyze this company further. But this move to cement business came as a news to me from the comment above. Don't know the rationale for this diversification