Sterling Tools plans Rs 70 cr capacity upgrade

The Rs 127 crore Sterling Tools is planning to increase its capacity to 30,000 metric tonne (MT) by early 2008, from the existing 14,000 MT to meet the rising demand for fasteners in both the domestic and international markets. The company will invest Rs 70 crore to fund the expansion.

"The capacity expansion has already begun at the company's second plant near Faridabad. Initially, we will add a capacity of 6,000 MT by March 2006," said Atul Aggarwal, director, Sterling Tools.

Sterling Tools has been exporting fasteners to Europe and the US, and exports account for 5 per cent of the company's sales. It has recently received an order of fasteners valued at $4 million from international tier-I companies, Macclean Fogg and Lisi. "There is a good possibility for expanding the value of the order to $10 million in the next six months," he said.

Promoted by M L Aggarwal, Sterling Tools primarily caters to automobile companies such as Tata Motors, Maruti, Hero Honda, Bajaj, Mahindra & Mahindra, Ashok Leyland and Eicher. OEM supplies account for 90 per cent of the company's business, the balance 10 per cent is sold in the replacement market.

The company's manufacturing facilities are located in Faridabad, Haryana, with regional offices in Chennai and Pune, and representative offices in Jamshedpur and Mumbai.