The Hindu Business Line : Talbros Automotive to set up two units this year

The company is also planning to diversify into forgingsand would be setting up a unit for the same in Haryana in a couple of months. "We would be investing about Rs 30 crore for setting up the forgings unit. Initially, about 60-65 per cent of the production would be supplied to our group company, QH Talbros. But we expect good demand for the business particularly from the export markets. We are targeting our forgings business to achieve a turnover of about Rs 100 crore in the next 4-5 years," Mr K. Sairam, President, TACL, said.

Meanwhile, TACL has entered into a joint venture with its technical collaborator Nippon Leakless Corporation (Japan) to set up a unit at Manesar to manufacture selective gaskets. The new company, in which Nippon has 60 per cent equity, would be called Nippon Leakless Talbros Ltd. The unit is being set up with an initial investment of Rs 10 crore and would begin commercial production in the first quarter of 2005-06. The joint venture company expects to reach a sales turnover of Rs 50 crore in the next year. The company would be supplying gaskets to all Honda subsidiaries (including Hero Honda) in India.

"We would be spending about Rs 50-55 crore over the next few years for our expansions plans. We expect the gaskets business alone to grow to Rs 150 crore in the next three years," Mr Sairam said.

TACL is looking at a turnover of Rs 100 crore in the current financial year. At present, 65 per cent of the company's sales come from the OE segment, 15 per cent from exports and the balance from the replacement market. TACL currently has a market share of about 50 per cent in the domestic gaskets market.

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