The Hindu Business Line : Iris Manufacturing scouting for partner to make tools

Snapshot
The company has initiated dialogue with a couple of companies in the US and the deal is likely to be finalised in six months.
It plans to eventually get into manufacturing progressive tooling, components made out of hot stamping and hydro forming processes.
IML is working on getting the AS 1 certification, which will enable it to cater to the aerospace industry.

T. Murrali

Chennai, April 15 The Chennai-based Iris Manufacturing Ltd (IML), part of the Rs 6,000-crore Shriram Group, is scouting for a partner to get into manufacturing tools for manufacturing ‘A panels’ or ‘skin panels’ for automobiles.

Speaking the Business Line the Managing Director of IML, Mr S. Prem Kumar, said the company has initiated dialogue with a couple of companies in the US. A detailed study is being made at present and the deal would be finalised in six months, he said.

According to him, there is a dearth of complex tools in the country. Besides, there are no standards in tool manufacturing, the major impediment for cost competitiveness and reduced lead times. The company would be enabled to address these issues with the proposed tie-up, he said. Eventually, IML would be getting into manufacturing progressive tooling, components made out of hot stamping and hydro forming processes.

Since inception in 1999, the company has been into design and development of tools. As a logical sequence, it began manufacturing B panels (parts like the inner door frame of a car etc.) and even created dedicated manufacturing lines for few customers including Keihen Carburettors, PHC Manufacturing, Repco, Royal Enfield, Tata Johnson, Tubes India and Whirlpool.

At present, about 60 per cent of the turnover of the company comes from sheet metal component manufacturing and the rest from tool making.

In 2007-08, the company recorded turnover of Rs 15 crore (Rs 11 crore); it expects sales to touch Rs 50 crore by 2010-11. Today, about 40 per cent of the total sales comes from exports, mainly from the US.

IML is working on getting the AS 1 certification, which will enable it to cater to the aerospace industry, he said. The company invested Rs 3 crore last year to augment its capacity.

Over the next three years it would invest Rs 8 crore, he said.

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