Circuit Systems plans unit in GIDC SEZ

Gandhinagar-based Circuit Systems (India), manufacturer of rigid printed circuit boards (PCB), a key electronic component is planning to set up a new unit at the Gandhinagar Electronic Park, a special economic zone (SEZ) developed by the Gujarat Industrial Development Corporation (GIDC).

The company is also looking at acquiring a small marketing set up outside the country, in US or Europe worth around Rs 2 crore to expand its sales network.

To be built at an investment of Rs 18.43 crore, the unit will cater to the increasing demand in PCBs in the domestic and global markets.

Presently the company's facility at Gandhinagar has a production capacity of 84,000 sq mts per year.

The new unit will have a capacity of 150,000 sq mts per annum and is likely to be commissioned by the second half of 2008.

To fund the facility's expansion and for the proposed acquisition, the company will hit the capital market with its maiden public issue of over 4.2 million equity shares of Rs 10 each for cash at a premium of Rs 25 per equity share aggregating to Rs 14.85 crore.

The fund to be raised includes the promoters' contribution of Rs 4.37 crore. The public issue will open on September 27 and close on October 5 2007.

Printed Circuit Board is one of the leading components which are used for manufacturing any electronic hardware product. It is used in high-tech mobile phones, computers, automobiles, radars, submarine controls and electronic toys.

About 55 per cent of the company's revenues come from the process control, automobile and UPS verticals. It also exports them to Europe, US, South East Asia and New Zealand.

Nearly 30 per cent of the revenues come from exports and with the commissioning of the SEZ unit, the company is looking at exports garnering 50 per cent of the revenues.