Ludhiana-based GS Auto International Ltd, which designs and manufactures automotive components in India plans to raise Rs 50 crore for setting up a new manufacturing unit.
Due to the volatile market situation, the company has shelved its plan to take route of Foreign Currency Convertible Bonds (FCCBs), American Depository Receipts (ADRs) and Global Depository Receipts (GDRs) to raise funds. Now the company will generate money through bank borrowings.
A company official revealed that the company had started looking for a location to establish its new branch in Jamshedpur and Uttarakhand. It is expected that the location will be finalised shortly.
Talking about the overall growth of the company during 2007-08, the official said, ?The year was full of challenges like rise in steel prices, rise in crude prices, slowdown in key markets such as in USA, which affected the global automobile industry. There was a decline in the export turnover of the company due to global economic slowdown. Despite all the difficulties, the sales of the company grew by over 12.50%. Moreover, we have not postponed our expansion plans. Hopefully, these plans will be executed well on time?.
GS Auto Inernational Limited worth Rs 100 crore, which started operations in 1983 manufactures automative suspension and fastening components for Indian and international passenger cars, utility vehicles, commercial vehicles and special purpose vehicles.