Mumbai: Auto ancillary firm Setco Automotive Ltd plans to invest Rs 42 crore to increase its manufacturing capacity of clutch and clutch parts, a senior company official said on Monday.
"The expansion would be funded through bank borrowings and internal accruals," J.K. Nag, business director, told Reuters.
Setco, which supplies to automobile firms like Tata Motors Ltd and Ashok Leyland Ltd, would set up a new factory in the northern state of Uttarakhand for assembly of clutch parts and a new press shop at its existing factory near near Vadodara in the western state of Gujarat, he said.
"Our old factory at Vadodara is already working at more than 100 per cent capacity and we needed more capacity," Nag added.
The new factory in Uttarakhand is expected to be operational by December 2007 and the press shop by April 2008.
"With the expansion of the new factory our capacity is expected to increase by 30 per cent," Nag said.
Nag said the need for the press shop arose because some of the vendors could not supply parts and this resulted in a loss of revenue of around Rs 20 crore last year.
"This press shop would meet 60-70 per cent of our captive requirements, exports and for existing customers," he added.
Nag said revenue is expected to rise by 15-20 per cent in the current financial year after factoring in the expansion at Uttarakhand. However, he declined to give the likely net profit growth as it would depend on market conditions for its products.
For the financial year ended March 2007, Setco's consolidated net profit was Rs 13.06 crore on revenues of Rs 185 crore.http://sify.com/finance/equity/fullstory.php?id=14524471
No comments:
Post a Comment