The Hindu Business Line : Bagla Group plans expansion

The Rs 300-crore, Aurangabad-based auto components manufacturer, Bagla Group, is on an expansion drive with the company announcing the opening of the eighth and ninth plants of flagship company, Aurangabad Electricals.

The company has lined up investments of Rs 150 crore over the next two years for its foray into the high tensile fasteners business and the setting up of an export-oriented plant for aluminium die-casting, Mr Rishi Bagla, Joint Managing Director, said here.

The company, which has been a single source supplier to a two-wheeler company till a couple of years back, is now expanding the business to tap the huge demand for components out of India.

Outsourcing

"Expectations are high that India can take centre stage as a favoured location for global outsourcing. This expansion plan signals ours continued focus on offering high-end solutions in the automotive value chain and will help us continue to meet the demands of our rapidly growing customer base nationally and internationally", Mr R.N. Bagla, Managing Director, Bagla Group, said.

"With the market opening up for the Indian component industry, we hope to reach the Rs 1,000-crore turnover mark by 2010, he added.

The company has recently commissioned an export-oriented plant for aluminium die-casting at an investment of Rs 45 crore.

Also on stream now is a new plant for high tensile fasteners with a 6,000-tonne annual capacity.

"We have invested Rs 26 crore for the new plant and expect the capacity to go up to 8,400- t/annum within the next year," Mr Bagla said adding the product will cater to clients such as Piaggio, Bajaj Auto Ltd, Knorr Bremse and Lombardini.

Products range

The company manufactures a range of products from aluminium die-castings, fasteners, brakes panel assembly for motorcycles, wheel rims, spokes among other things and is now exporting to OEMs such as Piaggio directly and participating in developing new product from inception stage such as mini bikes. It is working on increasing its presence in the four-wheeler segment, which currently contributes Rs 40 crore out of their total turnover.

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