Auto components industry may witness growth in future
According to a statement made by the auto components industry on Tuesday, the sector is moving in the direction of massive growth due to the increase in the demand of components in the domestic as well as the international markets. The companies like Bharat Auto, Lumax industries, Rico Auto, Sono Koyo Subros and a few others are reported to have made announcements regarding their future investments and expansion plans during this year and the next year.
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According to the MD of Rico Auto, Mr Arvind Kapur, the auto parts company has received an order for Rs 50 - Rs 70 crore, for the next seven-eight years for manufacturing the transmissions for a global automobile manufacturer . Apparently, the company has plans to make an investment of Rs 50 crore in the next three years to expand their existing facility. He has reportedly added that the company will be responsible to produce both the manual and the automatic transmissions for which the shipments are likely to start from June, 2012 possibly from the Sanand facility. The company also witnessed a growth in turnover from Rs 1,015 crore to Rs 1,250 crore since last year.
CMD of Bharat Forge has expressed his opinion that it is the company's prerogative to overcome the downturn that is bound to come in every four years, and head towards growth. The automobile industry targets 10 million four-wheeler sales from the current 3 million units sale by 2020, accordingly the investments are to be made.
The chairman of Subros, Ramesh Suri is also believed to have made a statement that a marked growth is observed in all the sectors including the two-wheeler, four-wheeler or the commercial vehicle segment and the company intends to invest around Rs 140 crore towards expansion by 2012-2013. Subros, which is also a largest manufacturer of air-conditioning systems has five facilities in states like Chennai, Nasik, Manesar, Pune and Sanand.
The VC and MD of Sono Koyo steering systems, Sanjay Kapur is reported to make investments of Rs 100 crore towards making expansions that also include a new pressure die-casting unit to be set up at Dharuhera, Haryana.
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