Auto component maker Rane TRW Steering Systems today inaugurated its new facility at Pantnagar (Uttarakhand) and said it looks to cross the Rs 500 crore-turnover mark by next fiscal on the back of expanding capacity in power steering and pump segments.
The company, a 50:50 joint venture between Rane Group and US-based TRW Automotive, said the Rs 14 crore plant will have an annual capacity of 80,000 units of steering gears for commercial vehicles (CV) and 50,000 units of pumps.
"To begin with, we will supply components to Ashok Leyland's new plant at Pantnagar and then try to tap the other original equipment makers (OEM) in the domestic market. The new plant is part of our strategy to grow in the components market for CVs," Rane Group Chairman L Ganesh said.
He said the company is looking cross the turnover mark of Rs 500 crore by 2010-11.
"Our target is to clock a turnover of around Rs 520 crore by next fiscal, up from Rs 300 crore in 2008-09," Ganesh said. As part of the plan, the JV will also go for expansion of its capacity for the two-wheeler segment.
"We will add an additional capacity of 10,000 units per month at our Chennai plant for two-wheeler hydraulic power steering, up from 30,000 units now. The project should be over by middle of the next fiscal," he said.
Besides, the new facility at Uttarakhand, Rane TRW currently operates a plant for CV components at Trichy (Tamil Nadu) and two facilities at Chennai for the two-wheeler segment.
Rane TRW Steering Systems counts major OEMs like Tata Motors, Ashok Leyland, Renault, General Motors and Mahindra & Mahindra among its major clients.
Regarding the export market, Ganesh said the company has just started delivering power steering for French car giant Renault's passenger cars in the Romanian market.
"At the moment, we want to focus on that project and achieve an export of 1.20 lakh units in the next fiscal," he said.
