Financial Daily from THE HINDU group of publications
Friday, Feb 17, 2006
Financial Daily from THE HINDU group of publications Friday, Feb 17, 2006 |
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Corporate
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Diversification Fenner to enter auto components sector — Plans Rs 100-cr investment Our Bureau
Mr Raghupati Singhania, Chairman, Fenner (India) Ltd, at a press conference in Chennai on Thursday. — Bijoy Ghosh
Chennai , Feb. 16 FENNER (India) Ltd, manufacturer of V-belts and oils seals for automotive and industrial applications, plans to diversify into new lines of automobile components. Addressing a press conference ahead of its golden jubilee celebration here today, Mr Raghupati Singhania, Chairman, Fenner (India) Ltd, said that it has earmarked about Rs 100 crore for its expansion plans, which are being finalised. The JK group company is keeping its options open on the new line of business. "It would not be confined to polymer or rubber products but include metal-based products including forgings and castings." Under consideration are engine mountings and automotive pulleys among a range of products. Its entry could be through acquisition or as a green field project, Mr Singhania said. Modernise units: The company is also looking at investing over Rs 75 crore in modernising and upgrading its facilities in Tamil Nadu and Andhra Pradesh, he added. It will spend Rs 15 crore for an oil seal plant with a capacity of 36 million pieces a year near Chennai. The V-belt unit in Hyderabad will involve investments of about Rs 25 crore and it will have a capacity to produce about 4 million belts. The balance Rs 35 crore would be for upgrading and modernising its existing facilities, he said. The Rs 300-crore company, which expects to report a profit before tax of Rs 40 crore in March, is planning to be a Rs 500-crore company in the next three years, according to Mr Singhania. Overseas acquisitions or strategic alliances are also under consideration, he said. The company's present capacity is about 18 million belts and 72 million oil seals. Its businesses also include a textile unit which caters to the hosiery industry. It has six manufacturing locations across Tamil Nadu and Andhra Pradesh.
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