Netplast may set up unit in Jamshedpur

Well-established companies of the city are finding ways of expanding outside the state.

Some left the city for Surat and Tiruputtur about ten years ago, when the government did not bother about the textile industry here. More recently, Uttaranchal, through its sops package, ensured that all worthwhile units set up shop in that state.

More recently, there were raiders from Rajasthan, who were keen to rope in auto component suppliers to LML, which stopped production, to Jaipur, where they could become suppliers of the forthcoming Hero Honda plant.

However, the new danger is not from any outsider, it is from within. It is due the non-implementation of VAT and this partly is the reason for the expansion of the city-based plastic auto component maker, Netplast, into Jharkhand.

But the problem is, being a two-tier supplier to Tata Motors for its Jamshedpur plant, freight charges for seat transportation are prohibitive.

So, Netplast, with a turnover of about Rs 20 crore, manufacturing plastic components for automobiles, has now established a plant in a rented accommodation. At this point of time, the investment is about Rs 15 lakh.

Managing Director RK Agrawal told Business Standard: "Within this year, our investment will go up to Rs 3 crore and by the end of the financial year, our production value from this plant will go up to Rs 10 crore. At this point we will be doing a turnover between Rs 25 crore and Rs 30 crore."

Bus business is going to increase in the country phenomenally, according to Agrawal. "The new Line, which we have opened, will manufacture bus-seating systems. Thus, we will cover the whole gamut of seating systems, except that of the passenger care, which requires very large investment."

Thus, bus-seating systems made by the company have been able to get orders from state transport corporations. The seats made by them have been found comfortable.

From assembling, the company will start manufacturing at Jamshedpur.