The Hindu Business Line : Carlco's CTP Gills, Suprajit Engg form venture for auto cables

IN a move that will see the CTP Gills Cables reduce its manufacturing activity and retain itself as an engineering and technical development centre over a period, the UK-based company has entered into a joint venture with Suprajit Engineering, an Indian automotive cables manufacturing company.

The £1.5-million joint venture will see the two partners investing an equal share in the facility being set up at Doddabellapur near Bangalore. The entire cost of the project will be met out of equity brought in by the companies.

The joint venture will be a 100-per cent export oriented unit. Automotive cables for four wheelers will be manufactured exclusively for CTP Gills, a group company of the UK-based multinational Carlco Plc, which has a sales turnover of £110 million s.

Addressing a joint press conference here on Wednesday, Mr Ian Williamson, Chief Executive of Carlco Plc, and Mr Ajit Kumar Rai, Managing Director of Suprajit Engineering Ltd, said the low-cost manufacturing advantage would help CTP expand its customer base in Europe and worldwide.

The Doddabellapur unit is expected to net business worth Rs 40 crore annually three years after it starts production from next October.

Until then, CTP will be sourcing Rs 2 crore worth of cables from Suprajit's existing facilities. It has a total capacity of 40 million cables a year spread across its facilities in Haryana, Gujarat and Bangalore, while CTP has sales worth £10 million.

Suprajit, with an annual compounded growth of 60 per cent, has projected a turnover of Rs 100 crore this year.

The company's revenue for the first half of the current fiscal touched Rs 45 crore and its net profit was Rs 3.7 crore.

More Stories on : Alliances & Joint Ventures | Automobile Components

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