FIEM plans seventh unit in Gujarat

Delhi-based FIEM Industries, manufacturer of automotive lighting equipment plans to set up its seventh unit in Gujarat to cater to the export market.

Talking to Business Standard, JK Jain, chairman and managing director of FIEM Industries, said, "We plan to set up a manufacturing unit in Gujarat". He further said, "The unit will be a 100-per cent export oriented unit".

However, he declined to give the details of the projects and the kind of investment that the company would make in Gujarat.

He further said that the company is currently focusing on increasing the exports. Since, the company is targeting the export market, it is more inclined to set up its units close to the seaports.

When asked about the location of its seventh unit in Gujarat, he declined to give the exact location but said that it will be strategically positioned between the current production facility of auto major General Motors (GM) at Vadodara and a nearby sea port.

According to the firm, the facility will cater to the demand of automotive lighting equipment for GM from its EOU, as under government regulations, 25 per cent of the EOU produce are allowed to be supplied to the local clients.

The company has units at Sonepat in Haryana and Mysore in Karnataka. It also has two units in Tamil Nadu's Hosur.

Currently, the company is raising funds from the capital market via the IPO mode for its upcoming units at Hosur and Nalagarh in Himachal Pradesh. It will have 4,100,000 equity shares at a face value of Rs 10 each with a price band of Rs 125-145.

The firm will be investing Rs 22.8 crore for setting up a new unit at Nalagarh, while Rs 6.7 crore will be invested to set up it EOU unit at Hosur. Further, Rs 8.5 crore and Rs 2.4 crore will be invested at its existing unit at Hosur and Sonepat for expanding its capacity.