Gujarat-based Steelcast Limited has entered into a long term agreement with Caterpillar Inc for supply of steel casting products with specifications given by the US major.
Post agreement, Steelcast's sales to Caterpillar will grow from Rs 40 crore in 2010-11 to about Rs 150 crore in 2015, the company informed.
As per the terms of agreement, Caterpillar would give an interest free loan of US $ 5 million (approx. Rs 25 crore) to Steelcast with a repayment period of next four years.
"We have been associated with Caterpillar for the last 20 years. Based on this long relationship and their confidence in our high quality manufacturing capability, the US major has, for the first time, entered into this unique new agreement with us," Chetan Tamboli, chairman and MD of Steelcast Ltd.
Caterpillar is the world's leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives.
"A long-term agreement with Caterpillar Inc gives us an assured off-take capability and access to supply high quality products to a global major," said Tamboli.