NTF to shed 15-20% equity, aims to raise Rs 50 cr

Gurgaon-based auto parts company NTF is planning to raise Rs 50 crore for its expansion. The funds will be raised through dilution of existing equity and borrowings.

The 100 per cent promoter-owned company expects to dilute 15-20 per cent of its equity to private investors.

The funds raised will be utilised for setting up three joint ventures with foreign companies to manufacture advanced materials for bodies of passenger cars, tractors and engineering equipment. NTF also plans to set up a styling and designing centre for car and tractor bodies.

"In the next three months, NTF will set up three equal joint ventures with Australian, English and German companies. The JVs will manufacture products that will make vehicles light and stylish," said Naveen Jain, director, NTF India. The names of the foreign companies were withheld citing confidentiality.

The Australian JV will develop advanced composites, which are light weight materials, made from carbon and glass fibres, enabling the vehicle to be more lighter.

The German JV will emphasise on making high quality plastics and design, giving the vehicle the stylish look. The English JV will develop tractor bodies.

NTF will hold 50 per cent stake in each of the companies. The three JVs will be set up near the company's existing premises at Manesar near Gurgaon.

NTF makes 98 special plastics, some of which are by utilising technologies of French and Italian companies. Maruti is the company's biggest client, sourcing 60 per cent of its auto body requirement from it. NTF reported sales worth Rs 30 crore last year.

"Through our unique materials and models, we will approach major car, tractor and engineering companies in India and abroad for sourcing. We expect to quadruple our revenue in the next two years," said Jain.

The company is also looking towards public listing in another couple of years. "We are looking for an initial public offering (IPO) by 2008-09," said Jain.