Three-wheeler maker Atul Auto plans to double its capacity to 48,000 units from the existing 24,000 by next year, a top company official said.
"Demand for our three-wheelers is increasing in the country. To cater to this demand, we plan to double our capacity by December 2011," Atul Auto Director Vijay Kedia said here today.
Earlier, the Rajkot-based three-wheeler manufacturer, listed on BSE, had decided to set up a new plant in south India. But now, aims to expand capacity at its existing site in Gujarat.
The company plans to invest Rs 30 crore to improve its capacity, he said.
"Earlier, this expansion was planned at a different site in a different state. But finally we decided to expand at our present site (in Gujarat) in order to save on huge investment into land. Funds for this expansion will come very comfortably from internal accruals and a rights issue, which is due to come in December this year," Kedia said.
The company plans to enhance its dealership network to 120 from the present 100 by March 2011.
Last year, Atul Auto clocked a turnover of Rs 120 crore. This fiscal, it is targeting a turnover of around Rs 175 crore.
Atul Auto is also ready to invest Rs 70-100 crore for acquisitions. "We are open for acquisitions as a route for growth," he said.
The three-wheeler maker has evinced an interest in acquiring a "not-less-than 51 per cent stake" in Scooters India, a public sector undertaking in which the government is mulling a divestment.
"We are interested in acquiring a majority stake in Scooters India. We intend to invest in Scooters India's technology and expand capacity. We have similar products," Kedia said.
Atul Auto and Scooters India make similar products in terms of front engine three-wheelers, whereas Bajaj and Piaggio are focusing on rear-engine options.
Atul Auto manufactures and markets 16 models in the domestic market.