Suprajit mulls Rs 40 cr expansion

The Bangalore-based auto components manufacturer, Suprajit Engineering, has announced a Rs 40 crore capital expenditure plan.

According to Ajit Kumar Rai, managing director of the company, Rs 40 crore is to be spent on expanding capacity for domestic business, export business and overseas acquisition.

CTP Suprajit Automotive, a 50:50 joint venture with Carclo of UK to set up a 100 per cent export-oriented unit (EoU) for exporting cables to European markets has commenced the trial run. The capacity of the plant is estimated to be around 10 million automotive cables per year. The plant is valued at 1.5 million pound ($2.7 million).

"New contracts are being bagged from major European Union customers through joint venture with CTP Gills, which is our techno-commercial front-end and the joint venture is being projected as a low-cost manufacturing base," said Rai.

Also, Suprajit will go live on its ERP implementation shortly to integrate its units, said Rai.

For the third quarter of FY 2005-06, the company recorded a growth of 31.06 per cent, around Rs 102.25 crore as against Rs 78.02 crore posted during the corresponding period of last year.

The company's board declared an interim dividend of 20 per cent for the year 2005-06 against 20 per cent interim dividend paid during 2004-05.