Ace Micromatic targets to double turnover in 3 yrs

To set up greenfield plants at Bangalore, Uttaranchal.

Ace Micromatic Group, the Bangalore-based Rs 500-crore manufacturer of machine tools, plans to double its turnover to Rs 1,000 crore by the end of fiscal 2008-09. The company, which is growing at 25-30 per cent year-on-year, aims to achieve the target by expanding its manufacturing capacity across the country.

Group managing director Shrinivas G Shirgurkar said, "We are taking a series of measures to expand our manufacturing capacity at various locations in the country to become the first machine tool company in the country to achieve the Rs 1,000-crore sales mark in the next three years."

In the present year, the company is likely to touch the Rs 700-crore mark.

Ace intends to set up two more greenfield manufacturing plants near Bangalore and at a location in Uttaranchal. While the proposed facility near Bangalore is likely to be set up for a capital expenditure of Rs 50 crore, the company is finalising the detailed investment plan for Uttaranchal, he said.

"Logistically it is appropriate for us to be near our key customers and moreover Uttaranchal offers fiscal incentives like excise duty holiday for 10 years and income tax holiday for the first five years and 30 per cent concession thereafter. With these incentives, we will be able to produce and sell our machines at 17 per cent lower prices than elsewhere in the country," Shirgurkar said.

The new facilities are expected to take the installed capacity of the company from the existing 2,000 lathe machines per annum to 5,000 during the next fiscal year and 10,000 lathe machines by 2009-10. This is also expected to help the company achieve its export commitments, he said.

To showcase itself, the company will participate in a big way in Imtex 2007 (Indian Machine Tool Exhibition), one of the largest machine tool exhibitions in the world. It will showcase four new technologies developed in-house.

It will launch a series of high technology products like turn mill centre with Y axis, CNC lathe with robot loading, twin spindle machining centre and cam lobe grinding machine.

It will also introduce a range of low cost flat bed CNC lathes for casting and forging shops.