Business Standard

Suprajit bags Rs 40 cr Tata Motors order

Image

BS Reporter Bangalore
Bangalore-based automotive cables manufacturer, Suprajit Engineering, has bagged a Rs 40 crore automobile cables order from Tata Motors for the supply of cables to Tata Motors' small car project at Singur in West Bengal, according to K Ajith Kumar Rai, managing director of the company.
 
"The order is spread over five years and the company is actively considering setting up a cable plant at Singur," he added.
 
Suprajit Engineering, last month, signed an MoU with China-based Jiang Yin Yuan Feng Communication Equipments.
 
As per the agreement the company will establish a joint venture with Jiang to manufacture cables in China. The JV is expected to be a 70:30 partnership basis. This will be a subsidiary of the company in China. As a long-term logistics and co-operative manufacturing programme, the company has signed an agreement with Michang Cables, Korea.
 
Meanwhile, the company's subsidiary Gills Cables in the UK and CTP Suprajit Automotive have received export orders to the tune of $7.5 million per year from global majors. The construction of the company's Pantnagar plant is on schedule. The plant is expected to go into production by April, 2007.
 
Ajith Rai said Suprajit Engineering's growth in the domestic business is expected to be in line with the automotive sector growth of 15-20 per cent.
 
However, with the higher margin export business being shifted to SAL (where income tax is exempt), higher interest costs due to larger borrowings for acquisition as well as domestic expansion, higher employee costs and raw material prices may put margin pressure at Suprajit in the short term.

 
 

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Feb 20 2007 | 12:00 AM IST

Explore News