Auto components maker Rico Auto today announced its foray into four-wheeler aftermarket segment, having established itself as a leading supplier of parts to various domestic and global firms. The company, which had last year entered the two-wheeler aftermarket vertical, is targeting revenues of over Rs 100 crore from the aftermarket business by 2020.
Besides supplying auto parts directly to manufacturers, following its foray into the aftermarket segment, the company's components will now be available directly to consumers in case of repair or replacement of parts.
"This year we are targeting Rs 25-30 crore from the aftermarket segment. By 2020, we are aiming for over Rs 100 crore from the vertical," Rico Auto Industries Chairman Arvind Kapur told PTI. The company has already established a network of 40 channel partners across the country for aftermarket segment and even set up a strong base in Sri Lanka and Nepal, he added.
Rico started with 28 products for the aftermarket last year. It already has added 250 more parts and aims to have over 400 products in both two-wheeler and four-wheeler components segment by end of the current fiscal. The company is already an established player in the two-wheeler original equipment manufacturer (OEM) segment with supplies to major players like Hero MotoCorp, TVS Motor, HMSI and Bajaj Auto.
Its four-wheeler components OEM partners include entities like Maruti Suzuki, BMW, Honda Cars, Toyota and Renault-Nissan. Besides domestic players, Rico also caters to various export markets like the US, Europe, Japan and Latin America from 14 plants spread across the country.
Kapur said the company is targeting revenues of around Rs 2,000 crore by 2020. It reported a turnover of Rs 1,226 crore in 207-18 and expects to close the current fiscal with revenues of over Rs 1,500 crore.
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When asked about company's plans regarding capacity expansion, he added, "We are doubling capacity at Bawal (Haryana) and Chennai plants. We are looking to get into high technology products now."
He added that the company is also eyeing defence sector going ahead. Shares of Rico Auto today ended 1.7 per cent up at Rs 74.85 on the BSE.