MGT to invest Rs 75cr towards expansion, opening tech-centres
New Delhi, Sep 14 (UNI) Micromatic Grinding Technologies (MGT), largest manufacturer of high-precision grinding machines, will invest Rs 75 crore in the next two years for capacity expansion of its just-launched manufacturing unit at Ghaziabad and to establish four tech-centers.
The funding will be done through internal accruals and investment by partners.
The new manufacturing plant, built with an investment of Rs 25 crore at Ghaziabad, has a current capacity of 400 machines per year, which would be scaled up to 500 machines per year by 2009.
The tech-centres to come up at Bangalore, Gurgaon, Pune and Chennai will be acting as company's showroom as well as training and testing centres.
MGT in collaboration with Japan-based JTEKT Corporation will also develop a new CAM grinding machine at the Ghaziabad manufacturing plant for the Indian market. The new machine will help in production of precision components meeting Bharat I and Bharat II emission norms.
The sales target for the new machine developed out of the technical collaboration is Rs 70 crores.
As per the agreement, JKEKT will be buying the lower-end machines produced by GMT for exporting it to South-East Asia and Chinese markets.
''Four years of working together has convinced us of the technological capability and expertise of team at MGT. That coupled with the overall growth in demand of the Indian automotive industry made it logical for us to evolve that relationship into a formal technical collaboration with MGT which will allow adoption of our technology in growing markets like Asia,'' JTEKT Corporation Executive Director Hitoshi Akhane told reporters here.
Targeting at exports, we have opened a manned station at Sanghai, China to tap growing markets over there, he added.
With the new plant and increased investments, the company expects its revenues to grow by Rs 300 crore by 2010, Mr Dhand added.
''The net profit registered by the company stood at Rs 490 crore and is expected to cross Rs 750 crore by the end of the next fiscal,'' MGT Managing Director N K Dhand said.
The company's current order book stands at Rs 403 crore and is expected to cross Rs 500 crore by the end of the next fiscal, said Mr Dhand.
Part of the Rs 500 crore AceMicromatic group, MGT captures a total of 50 per cent market share in grinding machines space.
MGT is engaged in producing precision grinding machines being used by automotive, general engineering and defence sectors as part of their manufacturing process.
It has sold 3000 machines to major auto players including Tata Motors, Hero Honda, M&M, Bajaj Auto and others.
JTEKT Corporation, formed through the merger of Toyoda Machine Works and Koyo in 2005, is having an annual turnover of 9 billion dollar and is engaged in manufacturing steering systems, driveline products, bearings and machine tools.
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