In order to cater to the burgeoning demand of auto components in the domestic market, Punjab-based DCM Engineering Ltd, manufacturer of engine blocks and cylinder heads is planning to set up new unit at its existing premises in Ropar with an investment of Rs. 200 crore. The proposed facility would have an installed capacity of 70,000-75,000 metric tonnes of castings per annum and likely to commence operation by January 2013.
Currently, the company has manufacturing capacity of 65,000 metric tonnes of castings per. It supplies its products to Hyundai, Maruti, General Motors(Daewoo Korea), Swaraj Mazda, Eicher Motors, Ashok Leyland, Mahindra & Mahindra, Sonalika etc.
Speaking to Business Standard, DCM Engineering Ltd, managing director, J K Menon said, ‘In order to meet the growing demand from the automobile sector, we have plans to set up new unit for automobile castings with an investments of Rs. 200 crore. would cater to the Tractor and Commercial and Heavy commercial vehicles."
On being asked about the funding for the project, he mentioned, “We are examining various options including internal accruals, term loan from banks etc. to fund the project."
At present all the automobile companies are expanding their base in India in order to cater to the growing demand of customers. With robust growth in auto sector, the company has positive outlook for the current fiscal year. In last fiscal year, the turnover of the company was Rs. 400 crore and this year with increase in demand for automobile castings the company is expecting a growth of 12-15 per cent over the last year.
