Rajkot based three-wheeler maker Atul Auto Limited is planning to set up new production unit of around 50,000 units per annum (pa) with an investment of around Rs 100 crore. This would more than double the company's existing capacity.
"While the entire industry is experiencing negative growth, we are growing. Considering the potential in the Indian market, as well as opportunities in the overseas business, Atul is considering to expand its production capacity," said Niraj Chandra, director of Atul Auto. At present, Atul Auto's management and technical team is studying the various aspects of the project. The company is planning to have a production unit with a capacity of around 50,000 units pa. The company did not wish to specify a time-frame for the project.
Chandra added,"It is difficult to talk about a specific location, but our first preference is Gujarat as we belong to this area. However, we are not closed to considering other states as options.Final decision will be taken after our project team finishes their work."
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Earlier, during this financial year Atul has already doubled its production capacity from 24,000 units pa to 48,000 units pa at its Rajkot factory with an investment of about Rs 30 crore.
Jitendra Adhiya, vice president, finance of Atul Auto said, "For new expansion the company is planning to invest about Rs 100 crore. At the new unit we will continue to produce our existing models. Moreover, we plan introduce new models too." Atul Auto is also planning to introduce a petrol model of Atul Gemini by end of March 2014.
Chandra said, "At present our exports are negligible, but there is huge potential in the under-developed or developing countries like India where reasonable transportation is an issue." Atul Auto is currently exporting in five African countries including South Africa and Kenya. It is also exporting in Bangladesh under a technical tie up. The company has planned to invest in Sri Lanka and already proposal for that has been filed to Sri Lankan government in 2012.
Overall, the company is aiming to touch Rs 400 crore turnover in current financial year from last year's turnover of around Rs 362 crore.
