Premier to enter heavy engineering

Premier Ltd, which was known as Premier Automobiles in earlier days is set to enter the heavy engineering, CNC machine tools and utility vehicle manufacturing. Premier Ltd in its earlier days was known for manufacturing the then market leader premium, Padmini cars.

At the time when Indian Automobile industry is going through the maximum growth and many companies loking forward for more and more share in automobile manufacturing, Premier Ltd. intends to invest in heavy engineering and tool manufacturing.

As per the media reports, Maitreya Doshi who is the Chairman and Managing Director, Premier Ltd, the company is making huge investments with a view to become a major player in the fields of heavy engineering and machine tools. The reports says that Mr. Doshi has claimed a large investment of up to $50 million by the company in order to take over some other company and is soon to come with final revelation.

This shows that Padmini Ltd. Is working hard towards the expansion and growth programmes to have a better market share. The reports also say that an investment of Rs 100 crore is also made in the field of heavy engineering and the funds collected for the investment is from the sale of Mumbai based land of 200 acres. At present the value of that land lies between Rs 400 to Rs 500 crore. As per the reports, Mr. Doshi has commented that the land was sold out as it was not of great utility for the company and they want to be a market leader in heavy engineering segment which demands high investments but so assures perfect returns. At present the company is operating in three segments, heavy engineering, CNC machine tools and utility vehicles which has left to a turnover of Rs 300 crores for the company.

The company is also reported to not to enter the car segment again but will try to keep a hold on niche specially the SUV's. We recently launched an amazing model from company's stable, Premium Rio which is expected to mark a sale of 40,000 units soon.

Mr. Doshi also commented that in order to mark good profit with its launches, the company tries to keep the manufacturing cost fixed and at the same time maintain low volumes at low investments.

Read More on : Premier Rio