SRAM is on the rise

June 19, 2008

I've always been a fan of the little guy. In this case, the "little" guy isn't so little anymore. While SRAM is looking to exceed $400 million in revenue year ending June 30, they are still far behind Shimano who according to the Boss Report is "on pace to sell more than $1 billion in cycling components this year." But at a handsome $400 million in revenue this family owned company is not looking to sell but will be looking to leverage the momentum they have to keep the growth machine going. To do this they've employed JP Morgan to help find an investor who is willing to come along for the ride. A Little History on SRAM If you've not been hearing about SRAM in one form or another then you've been living in a vanilla ice-cream world. Welcome to 31 flavors. Well, it's more like 2-3 depending if you're a roadie or a dirt digger. In the world of mountain biking SRAM really became top of its class when in 2001 it introduced X.0 which was touted as revolutionary and visionary. It's taken Shimano years to catch up and honestly I don't think they really have or will. I guess we'll see if the new Saint line can get them a step closer. For the roadie crowd 2006 may go down as the year of years. I'm not talking about the mess with the Tour de France, I'm talking about when SRAM launched its new road line. A short two years later, Alberto Contador wins last month's Giro d'Italia riding on SRAM Red while second place finisher Riccardo Ricco was also riding SRAM. In it's first Grand Tour this is an amazing finish for a product line that is less than two years old. Campagnolo and Shimano may not be shivering in their cleats but they will at least be taking notice of what went down this past week. So riding this momentum which has been building since it's launch in 1987 is exactly what SRAM is looking to do with finding an investor. Will they overtake Shimano one day? Hard to say, but I'm sure it'll be worth someone's money to give it a go.

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