Avasarala Tech plans Rs150cr capex

Bangalore-based customised automation solutions provider and maker of capital machinery, Avasarala Technologies, has announced an expansion plan of around Rs 100-150 crore over the next three years.

According to an official release iised today, the plan covers enhancing the capacity of its manufacturing units and setting up a separate export-oriented unit on Hosur Road, primarily to manufacture specialised equipment for the US, Australian and European market.

The company plans to expand capacity of its manufacturing units in Bangalore, Mysore and Pondicherry to meet the growth in demand for its customised equipment catering to nuclear power, healthcare, automobile and space sectors both within the country and aboard. "With India aiming to be self-reliant in nuclear power by 2012 producing at least 10,280 MW of nuclear power during the 11th Plan Period, we expect a great demand for our customised machinery for nuclear power plants," T T Mani, managing director & CEO of Avasarala Technologies, said.

Besides nuclear sector, space also looked promising with the number of satellites being launched every year in the country expected to increase to at least five. Avasarala in association with ISRO has developed dual core ammonia-filled aluminum heat pipes, qualified for space applications. "ISRO intends to build around 50 satellites by 2012 and Avasarala will be the sole supplier of heat pipes for these satellites," Mani said.

The company has reserves of around Rs 48 crore and is loooking at private equity for the rest of the amount for the expansion plan. The company might also enter the capital market in the near future, Mani said.

The company also announced the handover of its first fuelling machine head (FMH) to the Nuclear Power Corporation (NCPIL). The FMH which is essential for fuelling nuclear power reactors and removing spent fuel from the reactor, was going to be installed at the Rajasthan atomic power project of NCPIL. "This is an extremely critical equipment for nuclear power reactors that can work at high temperatures without human interference," Mani said.

The company had also got an order for manufacturing four more FMHs for NCPIL, which will be delivered to NCPIL by October this year and will be installed at Rajasthan and Kaiga power plants, Mani added.

Avasarala will deliver the first FMH to S K Jain, chairman and managing director of NCPIL, in Bangalore on Tuesday.