Financial Daily from THE HINDU group of publications
Saturday, Jul 17, 2004
TAPS draws up plans to expand; eyes global markets
Pune , July 16
FROM being an auto component supplier, TAPS (Tata Auto Plastic Systems), an operating subsidy of the Tata group, is now poised to assume the role of system supplier in the domestic market and component supplier in the export markets.
Speaking to newspersons, Mr Rajeev Bakshi, CEO, said that this would give a focused approach to tap market demands.
In the domestic market it would be more of a system supplier and auto component supplier, while in the global market it would take on the role of a component supplier.
The company plans to follow the `JIT' (just in time) philosophy and start with a deadline of one and half hours, which would be brought down to one hour, which is the international standard.
Mr Bakshi said that the company has also charted plans to touch a target of Rs 1,000 crore by 2010. Of this, close to Rs 400 crore would come in from the export markets.
The company, which closed the year ended March 31, 2004 with a sales turnover of Rs 140 crore, is estimating a turnover of Rs 190 crore for the current fiscal. TAPS, which had accumulated losses during its first two years of operations, has been able to wipe out these losses during the last fiscal, Mr Bakshi said.
The company was set up in 1998 in collaboration with the Faurecia group of France and the Foggini group of Italy.
It manufacturers plastic interior and exterior components such as dashboards, door pads, bumpers and trims with European styling and finish.
Mr Bakshi said that to take care of the growing Toyota requirements in the country, TAPS is now planning to set up a plant in Bangalore.
This plant, with an investment of Rs 10 crore is expected to become a reality in the next eight months. Talks are already on with the Toyota Kirloskar group. Parts for the Corolla and the IMV (innovative multipurpose vehicle), to be launched by Toyota, would be supplied from this new plant. The component supply for Ford would also be taken up from this plant.
Mr Bakshi said that the company, which is spread over a nine-acre plot in Hinjewadi in Pune, is also looking at expansion. This expansion would take care of the export-oriented unit currently situated in the plant. For this, an investment of about Rs 5 crore would be made; the unit is expected to be commissioned by next year.
TAPS is also planning to set up an engineering centre in its premises which would include a full-fledged development centre for products, both for the domestic and the export markets. This centre would be looking at development of interior products. It will be commissioned next year. The investment that would be going into this venture would be close to Rs 4 crore in the initial stage.
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