Avtec's new plant to start operation by 2008

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New Delhi, Oct 5: Auto components company Avtec Ltd today said it will come up with a manufacturing plant at Kharagpur in West Bengal in the first quarter of 2008, entailing an investment of Rs 100 crore in the first phase.

''Our fourth and new facility at Kharagpur will commence its operation in early 2008,'' company's Chief Operating Officer Sudhir Rao told reporters.

The Rs 570-crore company will raise the money for the new facility, through organic route, including internal accruals and debt, Mr Rao said.

The new facility will only cater to the domestic market and manufacture 1,50,000 car sets and 35,000 vehicle sets, he added.

The company is in discussions with all the leading Indian Original Equipment Manufacturers (OEMs) for its Kharagpur plant, including Tata Motors, the CEO said.

''We see Tata as a very significant customer for our new facility,'' Mr Rao said.

The company is also looking at two international acquisitions and eyeing 50 million Euros companies.

It is also aiming at doubling its exports to Rs 80 crore by March 2008, he added.

Avtec will also launch products for both North America and Turkey by the year-end, the CEO said.

Company's revenues increased by 10 per cent year-on-year.

Avtec's, one of the country's leading manufacturer of automotive engines and transmissions, suppies components to OEMs, including Tata Motors, Ashok Leyland, Bharat Earth Movers Ltd (BEML), Caterpillar, Eicher, Ford, General Motors, Hindustan Motors and Mahindra&Mahindra.

The company, a part of Rs 5,000 crore GP-CK Birla Group with 30 per cent equity participation from Actis, has three other facilities at Indore (Madhya Pradesh), Hosur (Tamil Nadu) and Chennai(Tamil Nadu).


UNI

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