Auto component maker Anand Group today said it will invest Rs 1,400 crore over the next four years to expand its existing businesses with an aim to more than double its turnover to cross Rs 9,000 crore by 2014.
Accordingly, the group will also strengthen its workforce by about 60 per cent to up to 13,000 people in the next four years from 8,000 at present.
"The domestic auto industry is growing at a very healthy rate and it is likely to continue for the next few years. To cater to the demand and for our organic growth plans, we have earmarked an investment of Rs 1,400 crore for the next four years," Anand Group Chief Executive Officer Deepak Chopra told reporters here.
The investments will go to various expansion activities of the firm's 19 group entities, he added.
"Gabriel India will invest Rs 400 crore for expanding the shock absorber capacities at its eight plants, while Spicer (making axles and driveshafts) will put in Rs 300 crore by 2014," Chopra said.
Two other entities, Behr (cooling and heating systems maker) and Mahle Filter Systems, will also pump in Rs 150 crore each, while Rs 100 crore has been earmarked for investment by Mando (hydraulic brakes manufacturer), he added.
"Rest of the amount will be shared by other companies and joint ventures," Chopra said.
When asked about the funding of the investment, he said it will be a mix of debt and equity.
Chopra said the group is also aiming to more than double its total turnover to over Rs 9,000 crore from the existing about Rs 3,200 crore.
"In the next five years, we are expecting a compound annual growth of 23 per cent from organic route," he added.
The group is also aiming to expand inorganically and will consider both domestic and overseas acquisitions, besides looking to enter into new product segments.
Chopra said group company Faurecia Emission Control Technologies is expected to close a deal to acquire Yutaka Autoparts Pune Ltd by next month.
The group is exploring possibilities to expand its offerings by introducing new products such as electronic power steering, disk brakes for two-wheelers, control systems, electronics and more products for defence and railways sector.
Talking about its workforce, Chopra said: "Currently we have about 8,000 permanent employees. Going forward, it will increase to 12,500-13,000 people by 2014."
The group, which has 14 joint ventures with domestic and global firms, produces over 25 various components such as car air conditioners, radiators, shock absorbers, exhaust systems, water and waste-water technologies, engine bearings, air brakes components and piston rings.