Pune, Jan. 4
PUNE-based Uma Precision Ltd is to come out with an initial public offering in April to fund its Rs 50-crore expansion plan.
Uma Precision, a manufacturer and exporter of precision assemblies, systems and machine parts for the auto and electrical industries, is also in the process of setting up a surface treatment facility at Ranjangaon near Pune, according toMr Rajendra Z. Kankaria, Managing Director and Chief Executive Officer, Uma Precision.
Of the Rs 50 crore, Rs 40 crore is expected to come from the IPO and Rs 5 crore from internal accruals and the remaining would come from financial institutions, Mr Kankaria told
The Ranjangaon facility, which is being planned for captive use, would be spread over 50,000 sq ft area and would have an investment of about Rs 10 crore. The facility is expected to be operational by December, he said.
The company would be implementing a metal injection moulding project with technical collaboration with an US company and hopes to achieve a turnover of Rs 30 crore from this segment in the next fiscal.
On acquisition plans, Mr Kankaria said the company in the process of completing the formalities for acquiring a Bangalore-based firm. He said with this, the company, which has so long been handling single spindle process would now add on the multi-spindle process in which the Bangalore company specialises.
"This would help us compete globally and as both the companies are in the similar product category, it would help us with large volumes,'' he said.
He said the company would have in its facility about 10 multi-spindles before March 2006. Currently, about 10 million products are being churned out every month and this is expected to increase to 15 million products every month.
Mr Kankaria said the company is also looking at acquisitions in the US and talks have already begun with about three companies. These acquisitions are expected to be completed by March. The acquisitions would help the company set up its subsidiary in that country.
Mr Kankaria said Uma Precision had closed March 2005 with a turnover of Rs 65 crore of which about Rs 7 crore had come from exports. The company exports its products to Lucy Switchgear (about 400 products) in Dubai and to Multitech in the US.