The Hindu Business Line : Liners India to set up EOU in Chennai

LINERS India Ltd, engaged in the manufacture of cylinder liners, is setting up a 100 per cent export oriented unit in Chennai involving an investment of Rs 10 crore.

The new plant is meant for exporting its products to the US. The company is also expanding the existing capacity of its unit at Vijayawada from 2 million pieces to 2.3 million pieces per annum at a cost of Rs 4 crore.

According to the company's Managing Director, Mr S. Ganesh, while the Chennai plant would be commissioned by 2005, the expansion project would be completed by this year-end. Following this, the company's turnover is expected to cross Rs 40 crore from Rs 33 crore. The new plant will be funded through internal accruals and external borrowings.

Last year, the company received two awards from Federal Mogul, Europe, for which Liners India was the "preferred supplier". The awards were for "delivery excellence" and for "zero defect in quality". "Out of 10,000 active suppliers in Europe, only 12 companies were eligible for these awards and Liners India was the only company from the Asian region to achieve this distinction," Mr Ganesh said.

Talking to newspersons here, Mr Ganesh said that the company plans to set up a joint venture in Thailand where the cost of production would be 8 to 9 per cent cheaper than India on account low taxation. Apart from Federal Moghul, the company supplies to Techmot SP of Poland and Triumph Motorcycles and G.K.N. of the UK.

Mr Ganesh said that the company's domestic customers included Ashok Leyland, Tata Motors, M&M, Tata Cummins, Royal Enfield, Simpson & Co and Bajaj Tempo. It was now developing cylinder liners for Scorpio SUV.

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