Stanadyne India to invest Rs 100 cr in expansion

The company is planning to expand its capacity from the current 90,000 pumps a year to 2,40,000 pumps in next two years

Stanadyne Amalgamations Pvt Ltd, a joint venture between the US-based fuel pumps and fuel injection engines maker Stanadyne and Chennai-based Amalgamations Group, is planning to invest around Rs 100 crore in expansion of its manufacturing facility here.

It is looking at increasing its revenue from the current Rs 180 crore to Rs 500 crore in next two-three years.

The company, which has mainly been selling fuel injection systems for engines above 50 horse power (HP), is planning to introduce a technology in diesel fuel injection equipment in India for the introduction of low-sulphur fuel for engines below 50 HP, said Sanjay Chadda, managing director of Stanadyne India.

"We are planning to expand our capacity from the current 90,000 pumps a year to 2,40,000 pumps in next two years with an investment of Rs 100 crore," he said. Stanadyne holds 65 per cent shares in the company while Amalgamations Group the rest.

In 2016, Stanadyne would introduce a new fuel injection system for the under-50 HP engine market that would decrease particulate emissions by half while providing better fuel economy of up to 8 per cent. For a typical farm application, fuel savings could translate to up to Rs 14,000-15,000 per year, he said.

The product's introduction would be a key revenue driver and is projected to double Stanadyne's sales in India over the next few years.

The company has around 450 employees. Almost 40 per cent of the production in India is being exported. With the expansion in place, it expects to start exports to new markets, including Pakistan, Indonesia and China.

The company supplies equipment to Ashok Leyland, Kirloskar, John Deere, TAFE among others. It was also supplying to automotive majors Fiat and Lamborghini among others through exports, he added.