The Hindu Business Line : Mitsubishi opens Rs 50-cr TN facility

Mitsubishi Heavy Industries India Precision Tools Ltd (MHI-IPT), formerly SRP Tools Ltd, inaugurated its new manufacturing facility at its existing premises in Ranipet near Chennai on Friday.

The new Rs 50-crore facility would double the company’s present production capacity in gear cutting tools, said Mr Hidetaka Horioka, Managing Director of the company.

“The capacity expansion is in response to the rapid growth of the country’s automotive industry, whose output expected to reach four million units in 2010,” he said.

At present, the company’s clientele include Tata Motors, Ashok Leyland, Mahindra & Mahindra, Hero Honda, TVS Motor.

Export front

It plans to increase its export business, hitherto limited due to capacity constraints.

Last year, the company’s turnover was Rs 36 crore. It had a 35 per cent share of the market. Current year’s sales are expected to reach Rs 60 crore. With the capacity addition in place, it eyes 50 per cent share of the market.

It currently exports only 2 per cent of its overall production and aims at 50 per cent by 2015, when the turnover is expected to touch Rs 200 crore.

“The overseas thrust will fully capitalise on our parent company, Mitsubishi Heavy Industries’ world-wide brand equity and reputation in high-precision machine tool engineering,” Mr Horioka said.

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