Atul Auto to double output this fiscal

The Rajkot-based autorickshaw firm Atul Auto Ltd is planning to double its production capacity by the end of the current financial year at an investment of over Rs 2.5 crore.

The company has presence in Gujarat, Rajasthan, Madhya Pradesh, Chattishgarh and Andra Pradesh. It has plans to enter the markets in Tamil Nadu and Karnataka in the current financial year.

"With the increasing population in India, cargo and passenger vehicles have an extensive market both in urban and rural India. There is a shortage of public transport facilities in urban, semi-urban and small townships," said J J Chandra, chairman and managing director, Atul Auto.

The company has manufactured over 8,000 units in the financial year 2003-2004 as compared with around 5,000 units in fiscal 2002-2003, a growth of over 60 per cent. With the ongoing expansion, the company is expecting to manufacture around 15,000 units, a growth of over 87 per cent.

Bajaj Auto and Automobile Products of India Ltd (API) were the first companies to launch autorickshaws in India in early 1960s. Bajaj Auto and API launched the vehicles under licences from Italian companies Piaggio and Innocenti, respectively.

"API had to close down its operations due to management and financial problems leaving Bajaj Auto as the sole manufacturer of autorickshaws in the country. Other players in the market are Scooters India, Kerala Automobiles, Piaggio-Greaves and Atul Auto," said M S Patel, joint managing director, Atul Auto.

"As diesel prices are almost 60 per cent of petrol prices in India, most of the companies produce diesel vehicles. Another reason for the demand for diesel vehicles is the availability of Lombardini engines in India through Greaves Ltd," said Patel.

The total production of diesel autorickshaws in India is at around 75,000 vehicles per annum, while Bajaj Auto manufactures 1,50,000 petrol vehicles.

While the total supply of autorickshaws in India is at around 2,25,000 per annum, the present day demand is at around 3,00,000 vehicles per annum.

Atul Auto has a 12 per cent share in the diesel autorickshaw market, while it holds a four per cent share of the overall autorickshaw industry.

The company has plans to hike its market share to over 20 per cent in the diesel autorickshaw sector and to around seven per cent in the industry.

The turnover of the company at the end of fiscal 2003-2004 was Rs 90 crore and the company expects a turnover between Rs 140 crore and Rs 150 crore by the end of the current fiscal.