Heavy equipment manufacturer TIL Ltd plans to invest Rs 300 crore in the next two to three years to hike production capacity, including setting up a greenfield plant.
The company has also tied up with US-based high capacity lift truck maker, Hyster, for marketing and distributing the latter’s products to India, Nepal and Bhutan.
“We are constructing our third manufacturing plant in Kharagpur. The estimated project cost during the first phase is Rs 250 crore,” TIL President Satish K Bhatnagar said.
The first phase would be completed by mid 2009 and the company would thereafter decide on expansion in the second phase, he said.
When asked about the capacity of the upcoming plant, Bhatnagar said: “We will be making machineries worth Rs 400 crore per annum, which will include port equipments, mobile cranes, container handling equipments and various components for cranes.”
The company plans to export its container handling equipments to Germany, Middle East and South African countries, he added.
On the source of funding for its expansion drive, he said it would be a mix of debt and equity.
Besides, the company would also invest Rs 50 crore over the next two years in upgradation and modernisation of its existing two facilities in Kolkata and Sahibabad, Bhatnagar said.
“We are producing mobile cranes of 75-tonne load and generator sets in these two facilities. The annual production capacity is of worth Rs 400 crore a year,” he added.
Asked about TIL’s tie up with Hyster, Bhatnagar said, “It is a marketing, distribution and customer service agreement with the US giant for India, Nepal and Bhutan. Along with our products, we will also be selling Hyster’s equipments.”
Bhatnagar said the domestic firm secured exclusive rights to sell high capacity forklift trucks, empty container handlers, laden container handlers and reach stackers of Hyster.
“The understanding is for 10 years as of now, which is expandable. At a later stage, we may also consider a joint manufacturing facility here,” Bhatnagar said.
TIL had posted a total income of Rs 1,066 crore with a net profit of Rs 43 crore.
“We are expecting our revenue to increase by 20-25 per cent in the next 3-4 years,” he said.