Vybra Automet back in black, plans new forays

Vybra Automet, a city- based specialty forgings manufacturer for the automobile industry, is planning to foray into the manufacturing of forgings for heavy trucks and multi-axle trucks.

The company requires about Rs 10 crore for the proposed foray. At present, Vybra manufactures engine crankshafts, engine components and steering components for Tata Motors (Indica), Maruti (800cc) and Honda Power Products (gen sets).

"We are planning to manufacture a wide variety of components including front hubs, stub axles, connecting rods for automobile OEMs," V A Norhi, the managing director of the company, said.

The expansion cost might be funded by a preferential offer of equity or private placement or both, Norhi informed.

The company currently has a 5,500 tonne installed capacity with two lakh crankshaft forgings capacity per annum.

The proposed expansion will add another 5,000 tonnes capacity and a 1.5 lakh pieces annual capacity. It will contribute about Rs 3 to 4 crore additional revenues per quarter after the completion of the project, he said.

With the automobile industry witnessing accelerated growth, the company has turned round, and it posted a net profit for the last financial year after a long gap.

For the nine months ended December, it posted a net profit of Rs 3.76 crore on a operational income of Rs 23.88 crore and an other income of Rs 2.03 crore. In the third quarter, the company posted a net profit of Rs 2.86 crore on a total income of Rs 11.52 crore.

The company was referred to BIFR in 1991, which was reopened in 2000. The draft rehabilitation scheme sent by State Bank of India, which is the operating agency, was approved by BIFR in July 2003.

As per the BIFR package, Rs 10.63 crore relief was agreed to be given by the institutions and the banks, while the company was asked to repay Rs 9.5 crore in 16 quarterly installments.

"We have already paid Rs 2.2 crore in two quarterly installments, and are confident of bringing down the liability to about Rs 2 crore by March 205," Norhi expressed confidence.

The company received a fresh sanction of Rs 1 crore loan from APIDC for supplementing certain balancing equipment to its production line.

Norhi expects a turnover of Rs 37 crore for the current financial year, and a turnover of Rs 50 crore for the next fiscal without taking into consideration, the proposed expansion.

"We are receiving good enquiries from the two-wheeler manufacturers but we are not inclined to take up the jobs as our equipment will be under utilised because of the smaller sized components," he explained.

The company currently has a paid-up capital of Rs 4.16 crore in which the promoters hold about 50 per cent stake.