Autoline eyeing global thrust

Pune-based automotives manufacturer Autoline Industries Limited has planned expansion of its manufacturing capacities to be able to pitch for business from world automobile makers.

The company has signed strategic tieups for contract manufacturing for heavy vehicle maker Stokota of Belgium, has entered into a memorandum of understanding with Detroit Engineering Products to create a base in the US market and is planning a units in United Arab Emirates to make wheel rims and break shoes.

Autoline Industries director M Radhakrishnan told reporters on Tuesday that the company was planning to expand capacities at three of its units in Chakan near Pune to make a range of sheet metal components for the automobiles industry.

The company presently supplies about 400 different components for the auto industry including load bodies and door sub-assemblies. Its biggest customer is Tata Motors, followed by Mahindra and Mahindra and and Bajaj Auto.

Radhakrishnan said the company has planned an expansion programme with a finance outlay of Rs 104 crore to upgradae its facilities and modernise its tool room besides installing additional capacities by way of a new unit.

A part of the project cost is meant for acquisitions of units abroad as well as setting up of the unit in UAE, he said. The company has so far invested about Rs 3 crore and the rest will be raised from - among other sources - a equity issue of Rs 75 crore, he explained.

Describing "design to delivery" as the company's principal strength, Radhakrishnan said the company is confident of winning business in the engineering process outsourcing area through its understanding with the Detroit Engineered Products, USA, who is a registered vendor with auto giants such as General Motors or Ford "The US partners will be the front end for us and we will provide concept to delivery services," Radhakrishnan said.

Autoline has recently signed an arrangement with heavy vehicle manufacturer Stokota of Belgium to supply to its Indian subsidiary tippers, tipper trailers, tankers, cement bulkers and garbage extractors.