Sriram VijiBijoy GhoshBIJOY GHOSH
Brakes India, a major supplier of automotive braking systems, is considering setting up a new plant in one of its existing premises in Tamil Nadu, Andhra Pradesh or Gujarat to meet future growth, said MD Sriram Viji.
“Currently, we are in the process of setting up a new plant in Thervoy Kandigai, near Chennai, by investing Rs. 100 crore,” Mr. Viji said. The plant, which would manufacture products for commercial vehicle braking systems, was expected to become operational in three months time, he observed, adding that the products were currently in the process of getting validated.
According to Mr. Viji, the company had succeeded in posting high growth due to a good order book position as well as the introduction of new products.
“The factories are expected to run out of capacity in 18 months time... we are looking at expanding the capacity within our premises either in Tamil Nadu, Andhra Pradesh or Gujarat,” Mr. Viji explained.
On the outlook for the company’s future prospects, Mr. Viji said that over a five-year horizon, Brakes India expected to double sales in the domestic market and register a fivefold expansion in the export market, helped by volume growth and product content.
Eyeing Southeast Asia
Last fiscal, Brakes India along with its associate companies posted a total turnover of Rs. 5,500 crore, of which exports alone accounted for Rs. 1,400 crore.
The company is a big supplier of safety critical braking systems to Europe, which accounted for export revenue of Rs. 1,000 crore. It is also exploring opportunities in Southeast Asian countries, Mr. Viji added.