Sagar Works to make foray into auto, textiles

Ludhiana-based Sagar Engineering Works is planning to diversify into the textile and automobile sectors. At present, the company manufactures machine tools. It is evaluating options in both sectors. Recently, it invested Rs 12 lakh in the latest state-of-the-art technology. With this, the production capacity of the company has enhanced by 5-10 per cent. The company already has five units running in Ludhiana.

As part of its diversification plans, the company will make investments to the tune of Rs 25-30 crore. At the same, it is looking for possible tie-up with an MNC.

"We are studying markets in the textile and automobile sectors. Units will preferably be set up in Ludhiana, with an initial investment of Rs 25 to 30 crore. We are in a commanding position in the manufacturing of machine tools. In about 2-3 months, we will come up with our sixth unit here." said Jaswant Singh Sagar, MD, Sagar Engineering Works Pvt Ltd, who is also the president of Ludhiana Foundaries and Small Industries Association.

The group is growing at a rate of 16 percent every year. The group's turnover stands at Rs 12 crore.

"Recently, we spent about Rs 15-16 lakh, to have the latest state-of-art machinery. We are mainly in the business of making machine tools for sewing machine parts and auto parts. By the end of this fiscal, we should be growing at a rate of 15 per cent. The machine tools industry is doing well here. The export of machine tools by manufacturing units generates a revenue of about Rs 300-400 crore. Exporting has become quite easy, and we are doing it with the help of our dealers. We mainly export to countries like African countries, Poland, the Middle East and Nepal," said Jaswant Singh Sagar.

Talking about the fluctuation in steel prices in past, Singh said, "It did hamper the machine-tool manufacturing units. With the stagnation of steel prices, once again the industry has started making profits. Because of this fluctuation, the turnovers of companies are going down," said Sagar.