Shriram to invest Rs 90 cr

To meet the growing demand for auto spare parts, Shriman Pistons and Rings has got up a Rs 90-crore plan to expand production facilities at its Ghaziabad plant, an integrated unit for manufacturing pistons, engine valves, and rings.

"We have decided to upgrade manufacturing facilities at the Ghaziabad plant by investing Rs 90 crore during 2005-06, as demand for auto spare parts is increasing by 20 per cent per annum," said Umesh K Jhamb, senior general manager of the company, who was here to address the All Punjab Tractors Dealers' meet on Sunday.

He said the company was now manufacturing 700,000 pistons, 3.4 million rings, and 1 million engine valves annually and in the near future the production would be increased.

"We are planning to double the capacity in 2005-06," he said, adding that Shriram Pistons had the largest network of 5,000 dealers in the country.

Jhamb said the firm planned exports of Rs 75 crore this financial year, as compared to Rs 50 crore in 2004-05. "We are currently exporting to Latin American countries, the European Union, and the Middle East, besides trying to explore export potential in African countries," he added.

He said the company's share of the market was 30 per cent at present, with a turnover of Rs 400 crore. "In 2005-06, we have set ourselves a higher target, for which plans have already been implemented," he added.

About the collaboration of the company, Jhamb said for manufacturing rings, the collaboration was with Riken Corporation of Japan; for engine valves with Fuzi Dozx, again of Japan, and for pistons, with Kolben Schmiot of Germany and Hondo Foundry of Japan.

Asked about the change in the business scene after the implementation of the value-added tax (VAT) system, Jhamb said it was progressive and after that business had become more transparent.

About the dealers in Punjab, he said of the 5,000 dealers in the country, Punjab had about 400 of them, and as far business was concerned, the state's share was about 15 per cent.

Addressing the dealers' meet, Jhamb talked of the changing Indian automobile market as well as the future of the auto components industry in general and the tractor industry in particular.