Hotline: 1800 102 2007
Hotline: 1800 102 2007
Jul, 20 2018

Brakes India plans AP factory capacity expansion with Rs 100 cr investment

The Naidupeta plant went on stream in March this year. The proposed capacity expansion will add 24,000 tonnes to the capacity.

Brakes India plans AP factory capacity expansion with  Rs 100 cr investment

Brakes India, a leading auto parts company of the TVS Group, plans to invest about ₹100 crore in expanding the capacity at its Naidupeta factory in Andhra Pradesh, which adopts a modern ‘line concept’ to produce castings.

“The line concept is a little different from what we have done in the past and enables us to produce slightly larger and more intricate castings. This line produces components for brake assemblies, turbo charger assemblies, certain commercial vehicle structural and engine parts as well as new orders that we have on the anvil. The capacity is in the range of 12,000 tonnes per annum,” Sriram Viji, Deputy Managing Director, Brakes India, told BusinessLine.

The Naidupeta plant went on stream in March this year. The proposed capacity expansion will add 24,000 tonnes to the capacity.

The company has been investing in capacity addition, quality improvements and productivity enhancements on existing lines across foundry locations. “From a pure capacity perspective, we have invested over ₹300 crore in the past five years,” said Viji. The company has added two new lines at the Jhagadia foundry in Gujarat, one line at Naidupeta and replaced one of the older lines in Sholinghur, Tamil Nadu.

Growing demand

“Globally, we see a steady and growing demand in the automotive segment. In India, growth has been especially strong. Orders have been extremely strong in the past few quarters due to various factors including high GDP growth, pent-up demand from loss of sales in early 2017 due to BS4 confusion, increase in construction activity and pre-buy from upcoming regulation changes such as BS6,” said Viji.

He pointed out that the overall level of growth in the automotive sector is well beyond projections and that has led to a dearth of foundry capacity.

Many players have therefore already put in place, or looking to increase, capacity in the near term. But the foundry industry in general is a low profit margin business with many small players who face challenges in scaling up production, product development and quality, he added.

Brakes India is one of the largest exporters of automotive ductile iron castings. More than 50 per cent of the company’s sales from Indian locations meet export requirements.

Over 90 per cent of the production in Oman is exported to Europe and North America. It has a total capacity of more than 160,000 tonnes of castings a year.

sharebtn
Comment
user
email
mobile
address
star
Related opportunities
  • Tea And Coffee Chain
    About Us: New York City has always been a point of..
    Locations looking for expansion Delhi
    Establishment year 2018
    Franchising Launch Date 2019
    Investment size Rs. 10lac - 20lac
    Space required 200
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater New delhi Delhi
  • Chocolate Stores
    About Us: It was established in 2007 in India and originates..
    Locations looking for expansion Delhi
    Establishment year 2007
    Franchising Launch Date 2008
    Investment size Rs. 30lac - 50lac
    Space required 100
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater New delhi Delhi
  • Competitive Exam Coaching Institute
    About Us: Want to start your own institute or coaching? Unite..
    Locations looking for expansion Delhi
    Establishment year 2011
    Franchising Launch Date 2017
    Investment size Rs. 20lac - 30lac
    Space required 500
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater New delhi Delhi
  • Department & Convenience Stores
    About Us: Lätt Liv is originated in Asia and has a..
    Locations looking for expansion Gujarat
    Establishment year 2019
    Franchising Launch Date 2019
    Investment size Rs. 50lac - 1 Cr.
    Space required 800
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Surat Gujarat
Insta-Subscribe to
Entrepreneur
Magazine
sme-80x109
For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you
email
mobile
OR Click here to Subscribe Online
Daily Updates
Submit your email address to receive the latest updates on news & host of opportunities