Sensing higher demand for passenger cars in the country after the two stimulus packages announced in December 2008 and January this year, five auto component manufacturers, out of nearly 600 industry players, have lined up a total capex of nearly Rs 1,000 crore for 2009-10.
Most of these companies are eyeing double-digit growth in the current financial year as against nearly flat sales in 2008-09.
Minda Industries managing director NK Minda said, ?The company is setting up new plants in Vietnam, Pune, Bangalore and Manesar this year at an investment of Rs 200-250 crore, which will help us register 8-10% growth in 2009-10 as against total sales of Rs 1,200 crore last year.?
Sona Koyo, leading manufacturer of car steerings in India with a turnover of Rs 730 crore in 2008-09, has invested Rs 300 crore to set up new facilities under its recent joint ventures with JTEK, FUJI, Americam Axel and Arjun Stampings this year. The company, which already has four plants in the country, incurred a loss of Rs 30 crore but expects to register profits this fiscal.
?We will be investing Rs 40 crore during the remaining period of the fiscal specially for upgrading our R&D. Last year, we incurred a loss of Rs 3 crore, while this year we are looking at 10% growth from new launches and volume growth,? Deepak Jain, senior executive director, Lumax Industries said.
?We are looking at a turnover of Rs 1,000 crore in this fiscal up from Rs 700 crore in the last fiscal and we hope to achieve this on the basis of good performance in both domestic and overseas market,? Arvind Kapur, managing director, Rico Auto Industries said. The company has so far invested Rs 60 crore in this fiscal and plans to invest another Rs 40 crore in the remaining half on the new models, he added.
?We are running short of capacity because we didn?t accept demand to take off. Therefore, we will add 25% capacity this year,? Kapur said. Rico Auto Industries, which specialises in brake systems and dye-castings, is also looking to increase its exports by 30% in 2009-10.
