Hind Composite on the look out for foreign partner

The Rasoi group is scouting for a foreign collaborator to upgrade the product line of its auto component company, Hindustan Composite Ltd.

Hindustan Composite is in talks with several international players for improving its existing product line of brake liners and clutch facings.

Hindustan Composite will also expand capacity by setting up new production units. The company was looking at the eastern region, especially West Bengal, for the new unit. Internal appraisals were on to decide on the location.

"We plan to take the company to a new level by expanding the capacity as well as improving the product range," Raghu Mody, chairman of Hindustan Composite, told Business Standard.

Hindustan Composite Ltd is engaged in manufacture and marketing of fibre-based composite materials. Its friction materials product line included brake liners, roll linings, clutch facings and disc brake pads used in heavy and light trucks. Its sealing materials line included textile and insulation boards used in automobiles and other sectors.

The company has four plants in Maharastra, at Paithan, Bhandara, Ghatkopar and Jalna.

"The eastern region is also a big market for our products and we would like to have our presence here. Once, we zero in on locations, talks will be initiated with the state government," Mody added.

The Rasoi group, headquartered in Kolkata, bought out the foreign partner Asbestos, Magnesia & Friction Materials Ltd, earlier this year. Rasoi paid Rs 15 per share to the overseas company to acquire its 39 per cent stake.

After the acquisition, Rasoi's stake in Hindustan Composite rose to 62.07 per cent. The holding was distributed among Rasoi group companies.

The company posted net sales of Rs 55.59 crore for the year ending March 31, 2004 compared with Rs 62.45 crore in the previous year.

It earned net profit Rs 1.55 crore last year compared with Rs 1.21 crore in the previous year. The company expects a 15 per cent growth in topline in this fiscal.