Ind-Sphinx to pump in Rs 50 cr to double production capacity

Parwanoo-based Ind-Sphinx Precision Ltd is set to invest Rs 50 crore in its unit to double its production capacity in the next three years. The investment would be funded through internal accruals and lending.

Ind-Sphinx's product range includes cost-effective solutions for PCB drilling applications and solid carbide tools for precision machining that are made in the Himachal Pradesh plant.

Micro drill bit constitutes 70 per cent of the company's production. The company was founded in a joint venture with Sphinxwerke Muller AG of Switzerland, which is in the feild of micro machining. Almost 80 per cent of the company's products are exported to over 20 countries with more than two-thirds of the total exports going to US, Europe and far East.

Talking to Business Standard, Sunil Taneja, managing director, Ind-Sphinx Precision Ltd, said, "We are the only companies in this field in the country and are established leaders in these product categories. Our product range includes micro drills, standard drills, inverse drills, MLB drills, slot drills and routers. We export to over 20 countries and enjoy a reputation for good quality. Our major share of the products are exported to the countries in Europe, Far East, besides US."

He further said the company's turnover in the fiscal 2005-06 was about Rs 26 crore, which includes 80 per cent of exports.

"We are targeting to double our turnover in the next three years. For the fiscal 2006-07, our target is to increase the turnover to about Rs 35 crore. For this purpose, we would be investing about Rs 50 crore for the capacity expansion spread over next three years. This investment would help us in increasing the production capacity. As for the funding of the investment is concerned, we are looking at various options. It will be made through internal accruals and lending from financial institutions, but the exact proportion has not been decided so far. We would be focussing on ultra small tools for precision machines."

The company expects a huge growth in the export markets as it feels that the domestic market is very small. For expanding its base in the European markets, it has also set up a 100 per cent subsidiary in Germany for the purpose of marketing its products.

"The investment would help the company in the upgradation of technology and development of plant and machinery and infrastructure. We place considerable focus on quality and consistency of our precision drills and routers used in the manufacture of PCBs. We have a technological collaboration with Sphinx in Switzerland," adds Taneja.