Vehicle carrier and tipper manufacturer, Tippers & Trailers India Pvt Ltd, a division of the Hissaria Group, plans to raise debt to the tune of Rs 25 crore to finance the expansion of its tipper business. Chief executive officer of the Hosur-based company Ashok Hissaria said the company is presently seeking to raise funds through term loans from debt investors which will be invested in a new tipper plant in Gurgaon.
“We are looking only at raising debt for now. An IPO is planned 2-3 years down the line,” Hissaria said. Besides, tippers, trailers and other carrier bodies, the Hosur facility of the company manufactures electrical tubular poles and imports products like iron and steel, hydraulic steel, power packs and electrical fittings.
“This is the right time to look for expansion funding as the automobile industry is picking up from the lows of October-November last year. Our order book is presently around 60 days. This year, we expect our turnover to touch the Rs 55-60 crore range and extend this to Rs 100 crore in fiscal 2012.”
Tippers & Trailers is also said to be seeking seeking investment from venture capital firms as well as exploring JV possibilities in the carrier unit manufacturing space, according to industry sources. However, Hissaria did not further elaborate on this.
“The Tata Group and Ashok Leyland approached us for a joint venture company to cater to the cargo trailer and bus body markets. But we have finalised nothing yet on this front,” he said.
Established by the Hissaria group in 2004, the company has been working on transportation contracts with leading Indian automobile manufacturers like Nissan, Mahindra & Mahindra, Maruti Udyog Ltd, Hyundai, Toyota Kirloskar and Tata Motors.
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Tippers & Trailers claims to hold over 30 per cent of the prime mover market for automobiles in India which is growing at 130-150 new carrier vehicles every month. The company’s present capacity at 40-50 vehicles per month will be expanded to 75 vehicles this year, Hissaria said.
The company has set up a five-acre fully-equipped facility over 150,000 sq ft of built-up space for manufacturing as well as exporting tippers, trailers and truck bodies near Hosur. Its export markets include the UK, Canada and Iran.
“Once the Delhi plant is operational next year, we are looking to increase capacity to 150 carrier units per month. We will also explore possibilities of rolling out scooter carriers out of the Delhi plant,” Hissaria said.