Online BusinessShriram Pistons to invest Rs 225 cr to set up plant
Auto component maker, Shriram Pistons & Rings is planning to invest Rs 225 crore for setting up a new manufacturing facility at Pathredi, Rajasthan.
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The new plant will be operational by 2010. "We are planning to invest Rs 225 crore over the next two years for new plant at Pathredi which will manufacture Pistons and some other auto components," Shriram Pistons & Rings Managing Director A K Taneja told reporters on the sidelines of Annual ACMA conference here.
He said, the investment would come from the company"s internal accruals and debt.
The company is looking to achieve a turnover of Rs 700 crore during this fiscal, up from Rs 600 crore last year.
"The domestic demand from two wheeler and four wheeler industry is increasing. Although, the commercial vehicle segment is yet to pick up. However, component making companies have started to reinvest in the business," Taneja said.
Shriram Pistons & Rings has witnessed a significant decline in its exports this year.
"Exports constitute 25 per cent of our total annual sales and we have seen a 20 per cent decline in exports this fiscal. It will take before the exports market picks up again," he added.