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Thursday, May 04, 2006

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NRB Bearings plans Rs 100-cr expansion

C.R. Sukumar

Hyderabad , May 3

NRB Bearings Ltd, the Rs 258-crore manufacturer of ball and roller bearings, is embarking upon an expansion programme involving an investment outlay of Rs 100 crore, said its President, Ms Harshbeena Zaveri.

The expansion will be completed by 2007-end and will enable the company to double its needle bearings capacity and triple cylindrical rollers facility, Ms Zaveri told Business Line.

The company has its facilities in Thane, Aurangabad, Jalna, Waluj and Hyderabad. The expansion will be taken up at all these facilities, Ms Zaveri said.

The company plans to avail itself of around Rs 50 crore as institutional debt and meet the balance through internal accruals. At the end of March 2005, the company had over Rs 100 crore of reserves and surplus.

Currently reporting an annual growth of 18-20 per cent, the company hopes to maintain the growth at around 20 per cent per annum on the expanded capacities in the years to come, she said.

The Indian promoters group of NRB Bearings recently bought back 26 per cent holding in the company held by Timken France SAS, the erstwhile Nadella SA, which has held equity in NRB since 1966 and was the technical collaborator till 1998.

Operational flexibility

"The decision to buy out the equity gave NRB greater operational flexibility and the freedom to fulfil its vision of broadening the customer and product base, not only in the Indian market, but also in the global context," Ms Zaveri said.

Admitting that the NRB stock currently faces the problem of liquidity on the bourses with more than 80 per cent held by the promoters and only little over 10 per cent with the public, Ms Zaveri said the issue would be addressed shortly to improve the liquidity.

The company would also have to meet the latest SEBI guidelines of ensuring at least 25 per cent public holding.

This will be done with the help of options that include preferential offer and equity sale by the promoters, she said.

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