Frontier group plans expansion in Himachal

Kanpur-based Frontier group, manufacturer of rubber components, castings and springs, is planning expansion in Himachal Pradesh.

In a massive expansion based on the products developed in house through technological innovation, the company is targeting a turnover of Rs 100 crore in the current fiscal from its about Rs 60 crore turnover in the last fiscal.

The group having to two major companies, Frontier Alloys and Frontier Springs, has already taken 20 bighas at Paonta Sahib in Himachal Pradesh, where they propose to invest Rs 28 crore to establish all their product lines, replicating their Kanpur-based facilities.

Kundan Lal Bhatia, chief managing director of the group, told Business Standard that there shall be no excise duty for the next 10 years in their new unit.

"At present we are paying excise duty of Rs 3.40 crore, which means that in 10 years we will be saving about Rs 34 crore. There will be no company tax liability for the period. Many other concessions will ensure that huge benefits follow. Moreover, the infrastructure and transport problems that we confront in Kanpur are not there in Himachal Pradesh," Bhatia said.

The move is another setback to Uttar Pradesh, which has seen an exodus of industry expansion in Uttaranchal. Frontier's partial move to HP, will cost UP dearly as the group is fast expanding and is likely to emerge as a major component maker in years to come.

Further, to overcome the transportation problems due to bad roads in Panki Industrial Area, where its manufacturing facilities are located, it is planning to shift its operations to the Rania Industrial Area on the Kanpur "�Jhansi Highway.

The investment in HP is totally from internal accruals and the group is planning to be come a totally debt free company.