The Hindu Business Line : German co chooses ICIL as outsourcing partner

During the year ended March 31, ICIL recorded a turnover of Rs 66.84 crore, up from Rs 45.88 crore the previous year. The profit before tax stood at Rs 9.05 crore in 2005-06 against Rs 3.17 crore the previous year

Kolkata , Sept. 1

The € 100-million turnover Danfoss Bauer GmbH of Germany has chosen International Combustion (India) Ltd (ICIL) as its outsourcing partner.

Soon, ICIL will commence bulk supplies of cast iron machine parts, manufactured at its Aurangabad facility, to Danfoss Bauer, with whom the company already has a licensing arrangement for manufacture of geared motors and gearboxes.

Trial supplies

Talking to newspersons at the conclusion of the company's 70th annual general meeting held here on Friday, Mr S. Bagaria, Chairman of ICIL, said trial supplies of cast iron machine parts have already been made to Danfoss Bauer and they "have been tested and working well." Following this, a delegation from Bauer came on an "evaluation visit" to the Aurangabad facility. "Our manufacturing capabilities and the quality of our products matched the expectations of the delegation and we are gearing up to commence bulk supplies of cast iron machine parts from October-November this year," Mr Bagaria said.

According to him, another European collaborator of the company, Allgaier, has initiated discussions for outsourcing screening machines that are manufactured at ICIL's Nagpur factory. A capital expenditure of Rs 8-10 crore has been lined up for upgradation and augmentation of facilities at ICIL's plants in Nagpur and Aurangabad. The money required for implementation of the capital expenditure plan would be met through internal accruals and debt.

Mr I. Sen, Managing Director of ICIL, said the company's order book position as on end-August 2006 stood at Rs 56 crore. This was 20 per cent higher than the order book position in August 2005.

Rise in turnover

"The trends indicate that we will record a 15-20 per cent growth in turnover in the current fiscal. With ICIL becoming a favoured outsourcing partner of its overseas collaborators, our exports will also go up. From 10 per cent of the turnover, we expect exports to account for 25 per cent of the company's turnover over a period of time," he said.

During the year ended March 31 ICIL recorded a turnover of Rs 66.84 crore, up from Rs 45.88 crore the previous year.

The profit before tax stood at Rs 9.05 crore in 2005-06 against Rs 3.17 crore the previous year.

The profit after tax in 2005-06 was Rs 5.75 crore against Rs 2.20 crore in 2004-05. A dividend of 50 per cent (Rs 5 on each equity share of the face value of Rs 10 each) was declared for the year gone by.

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