Financial Daily from THE HINDU group of publications
Friday, Sep 09, 2005
Financial Daily from THE HINDU group of publications Friday, Sep 09, 2005 |
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Corporate
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New Projects Indo Schottle to invest Rs 70 cr to set up new units Neha Kaushik
New Delhi , Sept. 8 PUNE-BASED auto component manufacturer, Indo Schottle Auto Parts is planning to invest about Rs 70 crore over the next three years to set up two new facilities. The company has recently offloaded 23 per cent to private equity firm Crossover for $5.5 million in order to raise funds for its expansion plan. According to Mr Rohan Pusalkar, Executive Director, Indo Schottle, the company's new export oriented unit would be coming up soon as it foresees increased demand for its products coming from the overseas markets. "The new EOU, which would have a capacity of 6-8 million units, is expected to generate revenues of Rs 30 crore by 2008," Mr Pusalkar said. The company is also entering the area of hydraulics and would be signing a MoU with Eaton Corporation later this month to manufacture assemblies required for the company's hydraulic business. "In the first phase, Eaton will be sourcing components worth about Rs 20 crore. However, this can go up exponentially as Eaton has indicated that it intends to buy components worth about $300 million in the area of hydraulics alone," Mr Pusalkar said. At present, Indo Schottle has an annual installed capacity to manufacture 150 million engine valve collets, 40 million rocker arm screws, and six million parts and assemblies for turbochargers, fuel systems and hydraulics. The company, which is targeting turnover of Rs 150 crore by 2008, sells its turbochargers and fuel systems only in the overseas markets and expects exports to account for a chunk of its revenues in the coming years. Last year, more than half of the company's revenues came from sales in the overseas market. Some of Indo Schottle's international clients include automotive majors such as Cummins, Honeywell, and Mahle.
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