French company inks outsourcing contract with Rajkot-based unit

Rajkot-based CNC lathe machines manufacturing company "" Jyoti CNC Automation (JCAPL), had a party time last week of May, as 140 years old French company Hurron Graffenstaden S.A.S., engaged in manufacturing similar kind of machines, inked business outsourcing contract with JCAPL.

Speaking to Business Standard, P G Jadeja, chairman of JCAPL, said, "Now we will be selling the co-branded Jyoti-Hurron CNC machines to the French company's clients for their requirements of manufacturing aerospace components."

This machines are going to be marketed in the European circuit, especially in Italy, Germany and France, added Jadeja.

On May 24, officials from Hurron Graffenstaden S.A.S. had visited the unit of Jyoti Metoda to sign the contract, "Hurron's president and director general Gillbert Fischer and Bernard Echevard visited our Metoda plant and inked business outsourcing contract with our company," said Jadeja.

Hurron has 140 years of expertise and experience, whereas we have a required skillset to offer them at an affordable pricing structure, he added.

"Hurron has not only outsourced their hardware requirement from our company, but have also outsourced their software requirement in terms of designs of machines manufactured by them, which is going to be provided by us," Jadeja said. Since designing in European nations is a costly affair for any company, he added.

JCAPL business turnover for the financial year 2005-06 was around Rs 80 crore with a production base of manufacturing 500 CNC machines.

"CNC was started by the company since last 6 years. We started as a job-work unit for machine tools industry in Rajkot," Jadeja said.

Currently, we are aiming a production of 800 plus machines targeting financial business turnover of Rs 130 crore for 2006-07.

Jyoti-Hurron tie-up is a part of this projection and vide this business deal, we are going to market atleast 40-50 such co-branded machines in this year valuing approximately Rs 30 crore.

This machines are going to be marketed to the aerospace components manufacturing units, who are clients of Hurron, he said.

P G Jadeja said, "Jyoti was the first company to manufacture CNC machines in Gujarat. Driven by technology and innovation, JCAPL keeps including new firepower in its arsenal by introducing machines like CNC Turning Centres, Vertical Machining Centres, Oval Turning Centre i-SECT and first Indian machines like VMC 40/70 Linear with innovative Linear technology."

Company's expanding footprint ensures its global presence with export operations in countries like Italy, Russia, Poland, Argentina, Brazil and rest of south America, Tanzania and some African countries, Middle East and other Asian countries like Malaysia, he added.

As this machines have varied applications in areas of automobiles, aerospace, allied machinery, die-mould manufacturing, diamond & jewellery industries, defence, medical equipments manufacturing, plastic processing and textiles manufacturing etc, we are looking forward for a better prospectus on global arena too, he said.

"Majority of the European companies are now looking towards India as a possible outsourcing destinations for their such requirements. With this tie-up we automatically have an access to the European business practices and their requirements in terms of precision and performance. This will give us an cut-edge advantage over other bidders for such contracts from international markets," claimed Jadeja.