Liners plans to set up Rs 10cr plant in Chennai

Vijayawada-based Liners India Limited, which manufactures centrifugally cast automotive cylinder liners and shell moulded air-cooled cylinder barrels, is planning to set up a second plant at Chennai at a cost of Rs 10 crore. The Chennai plant will cater exclusively to the US market. The new plant is expected to be commissioned in 2005.

"The company is aiming to increase the production to meet the growing orders from domestic as well as export markets," S Ganesh, managing director of Liners India, told reporters here on Thursday.

Besides setting up of the new plant at Chennai, the company is also planning to expand its existing plant at Vijayawada at an estimated cost of Rs 4 crore, he said.

The company, established in 1974, currently supplies its products to all the domestic auto majors like Ashok Leyland, Tata Motors and Mahindra and Mahindra besides supplying its cylinder liners to the US-based Federal Mogul group and other global majors in auto component supplies.

The company's production capacity is expected to increase from the existing two million units to 2.3 million units per year after the second unit commences operations in Vijayawada. Liners India's annual turnover is expected to increase from Rs 33 crore to Rs 40 crore once the additional production commences, Ganesh said.

"The company has also been looking for a joint venture partner to set up another plant in Thailand. But nothing has been finalised yet," Ganesh said.

Liners India is the first manufacturing company to produce centrifugally cast automotive cylinder liners in Andhra Pradesh. It received two awards for delivery excellence and zero defect in quality for 2003 from Federal Mogul, Europe. Liners India is the only company from Asian region to achieve this distinction, Ganesh added.