Undeterred by the slowdown in the economy, the manufacturing outfits (auto, pharma and textile players) located in Punjab are steady on their expansion plans. Their performance can be gauged from the fact they are doing well at the bourses and further in order to cater to the growing demand they are expanding.
The major textile players of Punjab have mobilised over Rs2,500 crore in the last 18 months in putting up about 500,000 spindles.The prominent players Vardhaman, SEL, Jindal Cotex and Trident group have even crossed the borders to set their foot in Madhya Pradesh and Himachal Pradesh.
In order to cater to the burgeoning demand in auto sector, Ludhiana-based G S Auto International Ltd. manufacturer of automotive components is setting up new unit in Jamshedpur besides modernising the existing unit at Ludhiana involving capex of Rs50 crore. The Jamshedpur unit, is likely to commence commercial production by December 2010 and would have production capacity of 10,000 metric tonnes of steel casting tonnes per annum. In addition to this, the company is also had made budgetary provision of Rs10 crore for modernisation and automation of our existing unit at Ludhiana which is likely to be completed by June 2011.
Recently, Chandigarh-based Steel Strips Wheels Ltd (SSWL), the wheel rim major, has set up a manufacturing plant at an investment of Rs140 crore in the steel city, Jamshedpur, in order to supply the parts to leading auto majors. This plant by the company is the third one by the group after Chennai and Chandigarh. The plant will have an initial production capacity of one million wheel rims which will later be upgraded to two million in mid-2011. The company’s total capacity in India currently stood at 11 million and this will be enhanced to 15 million by March next year. Meanwhile, the company posted a turnover of Rs450 crore in the last fiscal year and it aims Rs850 crore of turnover in 2010-11 following the new capacity addition and increased exports.
Similarly, Chandigarh-based Surya Pharmaceutical Ltd has plans to raise Rs500 crore through various instrument like Rights Issue or Global Depository Receipts (GDRs)/ American Depository Receipts (ADRs)/Foreign Currency Convertible Bonds (FCCBs), through External Commercial Borrowings (ECB) etc. for funding its new projects, expansions, diversification, acquisitions, other business expenses and to augment working capital requirements.