Bangalore-based automobile components maker Suprajit Engineering Limited is setting up a manufacturing facility in Haridwar to produce automotive cables. The company is investing Rs 10 crore to set up the unit, which will have an installed capacity to manufacture 5-6 million cables per annum and will commence production early next year.
Ajit Kumar Rai, managing director, Suprajit Engineering Limited, said the company would cater to the requirements of Hero Honda Motors Ltd, which has commenced production of motorcycles in Haridwar. The company is supplying cables to Hero Honda from its Pantnagar plant. The capacity at Haridwar will be doubled in the next three years.
“We are setting up a plant in Haridwar as part of our policy to be near our customers. We will also get a seven-year tax holiday and exemption on excise duty here and as a result our production costs will be lower and the customer will benefit,” Rai said.
The plant in Haridwar will be SEL's 10th in the country. The company has five plants in Bangalore, of which, one is a 100 per cent export-oriented unit, one plant each in Chakan near Pune, Wapi, Manesar and Pantnagar. It has also been allotted land at Sanand in Gujarat adjacent to Tata Motors’ forthcoming plant to manufacture Nano cars. Suprajit plans to commence work on the plant next year, Rai said.
Suprajit manufactures the entire range of automotive cables for its clients like Bajaj Auto, Hero Honda, TVS Motors, Tata Motors, M&M, General Motors, Suzuki among others. It also manufactures speedometer console for TVS Motors and non-automotive cables for club cars. Besides, it exports cables to Suzuki in Europe, Magna, GM, Jaguar and Land Rover.
For the third quarter-ended December 2008, Suprajit reported a net profit of Rs 1.64 crore, a decline of 28.3 per cent compared with the corresponding quarter. Its turnover was up 1.2 per cent at Rs 39.6 crore during the third quarter.
