Coimbatore-based auto parts maker Pricol plans to invest about ₹225 crore in new plant and machinery during this fiscal for expanding its capacity and support its new projects.
Of the total capex, about ₹130 crore will be earmarked for building, infrastructure and plant and machinery expansion. It has set aside ₹40 crore for Pricol Wiping Systems and ₹10 crore for Brazil operations.
The company’s ₹32-crore greenfield unit at Sri City near Chennai is expected to be operational by October. The facility, which will also have a 250 kw rooftop solar facility, is coming up on six acres at the SEZ. This will be its 10th manufacturing unit in India, Vikram Mohan, Managing Director, Pricol said at the company’s annual general meeting recently.
Pricol is also investing ₹42 crore in a new factory at Hosur and it will be fully operational by the end of 2018. This plant, which will also have 250kw rooftop solar unit, will cater to the requirements of the Bengaluru auto cluster.
Meanwhile, the company launched operations at the newly built plant at its ₹7.5-crore Manesar facility.
The ₹1,569-crore Pricol, which supplies its products predominantly to automobile OEMs, is recruiting about 400 people for its Hosur, Sri City and Manesar factories.
The company expects its business to grow by 15-18 per cent in this fiscal, supported by both organic growth and new projects. Two wheelers and passenger vehicles contributed to about 78 per cent of Pricol’s FY2018 revenues.
A report from rating agency Icra said Pricol’s margins are expected to improve supported by higher profits from the wiping systems business as it stabilises, lower costs in Brazil, scale economies and benefits from cost-saving initiatives.