Financial Daily from THE HINDU group of publications
Friday, Nov 01, 2002
Financial Daily from THE HINDU group of publications Friday, Nov 01, 2002 |
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Corporate
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Modernisation Suprajit to spend Rs 2-4 cr on Shah Concabs upgrade Our Bureau
BANGALORE, Oct. 31 SUPRAJIT Engineering Ltd (SEL), a Bangalore-based automotive cable company, plans to invest about Rs 2 to Rs 4 crore on upgrading Shah Concabs Pvt Ltd, a recently acquired company engaged in heavy duty automotive cables. SEL, which claims market leadership in size had bought over the Gujarat-based company for a cash deal of Rs 5 crore. According to Mr Ajith Kumar Rai, Managing Director SEL, Shah Concabs should add to the volume sum for the company, which has maintained a 30 to 35 per cent annual growth rate in its business. Starting as an ancillary of TVS Motor Company Ltd in 1987 and it has grown into an independent cables giant garnering the two-wheeler markets leadership. It has recently forayed into the four-wheeler segment, and is recognised as the tier-2 supplier of cable to Hyundai and Ford. It is also planning to start negotiations with Maruti Udyog Ltd. SEL's proposal stems from its newly set up manufacturing hub in Manesar in Haryana. The unit with an investment of Rs 5 crore was commissioned only recently. Mr Rai said with the acquisition of Shah Concabs, SEL is comfortably placed to service the entire market in India, through its facility in Gujarat to take care of the western markets, its two units in Bangalore enjoying the logistical advantage for the southern region and the Manesar unit taking care of the northern region. On TVS' role in the company, Mr Rai said the Chennai-based automotive company's stake has come down through dilution from 10 per cent to two per cent now. SEL is the OEM supplier of cables to all the major two wheeler companies in the country. SEL has recently started producing speedometers for the two-wheeler sector and with this sector's phenomenal growth the company plans to expand its present capacity of six lakh units per year. Its cable capacity is 20 million units per annum. With Shah Concabs in its stable, SEL has grown into a Rs 65-crore group, with bulk of the size being taken by SEL itself with over Rs 50 crore turnover.
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