The company is also working on increasing the capacity of its textile division. The company's IT division is also diversifying and the real estate division is all set to begin its first phase of construction.

Ambarish Mukherjee

Ropar (Punjab), Oct 2

DCM Engineering Ltd has firmed up plans to increase its grey iron castings capacity to 75,000 tonnes per annum from the present 50,000 tonnes by 2007.

The company over the past few months has already increased its capacity from 38,000 tonnes to 50,000 tonnes by de-bottlenecking its plant operations. The company manufacturers engine blocks and heads for automobiles.

The company Chairman, Mr Vinay Bharat Ram, said the additional capacity of 25,000 tonnes would involve an investment of Rs 50 crore.

"We are considering several options such as private placement of equity or even an initial public offer. Now that the de-bottlenecking operations are over we would be taking a final decision shortly," Mr Bharat Ram told a select group of presspersons at the plant in Ropar, Punjab.

The company is also implementing SAP/ERP software with an additional investment of Rs 1.5 crore to further modernise and streamline its foundry operations, which would be completed by March 2006, he said.

Simultaneously, the company is also working on increasing the capacity of its textile division.

The company's IT division is also diversifying and the real estate division is all set to begin its first phase of construction.

"Our entry into the real estate sector is primarily to raise funds for investing in manufacturing. We would be taking up projects and once completed the profit from each project would be invested in our manufacturing activities," he said.

The company caters to the need of automobile manufacturers, mostly original equipment manufacturers (OEM). Its objective is to place itself as the preferred vendor to all OEMs, the Chairman said.

DCM Engineering is already supplying to companies such as Hyundai, Maruti, Hindustan Motors, General Motors, Swaraj Mazda, Eicher Motors, Ashok Leyland, Mahindra & Mahindra as well as tractor makers.

The company has also developed a significant presence in the international market and supplies engine blocks and heads to GM Daewoo in Korea, Perodua in Malaysia and Hepworth in England.

"After we complete our expansion plan in the existing foundry in Punjab, we would be looking at setting up another facility in South India, in particular so that our supply to the south-based automobile manufacturers can be made from that facility," Mr Bharat Ram said and added that the company is also looking beyond India for setting up manufacturing facilities.

"Our future plans also include setting up a joint venture company with some international company or major domestic entity. As far as existing operations are concerned we are trying to achieve an annual growth rate of 20 per cent," Mr Ram said.

DCM Engineering is owned around 70 per cent by DCM Ltd, a publicly listed flagship company of the Vinay Bharat Ram group.

The remaining stake is held by the promoter's family.

(This article was published in the Business Line print edition dated October 3, 2005)
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