2 posts tagged “location: sriperumbudur”
Note: Rs 1 Cr / Crore = Rs 10 millions
Tuesday, Oct 23, 2007
Corporate Reporter
Production commences at Sriperumbudur unit; tool shop and design centre also operational, Moulding facility at Ennore on stream
Sharp rise in net profit
CHENNAI: Ennore Foundries has lined up Rs. 350 crore capital expenditure in the next three years at its units in Ennore and Sriperumbudur near Chennai and in Hyderabad.
Addressing press persons here on Monday, V. Mahadevan, Managing Director, said the company has commenced trial production at its greenfield foundry in Sriperumbudur and this facility would further enhance production capabilities of cylinder blocks and heads with 40 per cent of capacity available for export markets.
The pattern and tool shop and the design centre in Sriperumbudur have become operational, he said. The company has also completed the installation of a new moulding line at Ennore for producing bigger castings weighing up to 500 kg., he added.
The company was proceeding ahead with the plans for establishing a new facility for ductile iron and grey iron castings, including blocks and heads, and also for a low pressure die-casting line for aluminium. According to Dheeraj G. Hinduja, Co-Chairman, of the company, the funding requirements would be met through private placement of equity in the first phase and in the second stage, the company would opt for a mix of debt and equity. In effect, there would be 13-14 per cent capital dilution, he said.
Commenting on the future growth, he said the company was looking at various options, including acquisition. The company would be on a par with any modern foundry on a global basis, Mr. Dheeraj Hinduja said.
Meanwhile, the company has reported a rise of 19 per cent in its turnover at Rs. 215.06 crore in the first half of the financial year ended September 30, 2007 against Rs. 181.45 crore in the year ago period. The net profit has risen by 89 per cent to Rs. 8.77 crore from Rs. 4.65 crore.
The continued thrust on production of high-end products in the value chain, namely blocks and heads, yielded enhanced market access and better results.
CHENNAI: In the next two years, the surrounding areas of Chennai and Sriperumbudur will attract a total investment of $3 billion in telecom and car manufacturing facilities, according to Information Technology Secretary C. Chandramouli.
Addressing a workshop on ’Offshoring and outsourcing opportunities from Australia’ organised by Indo-Australian Chamber of Commerce (IACC) here on Friday, he said by 2008, global firms would invest $1 billion in the Sriperumbudur zone either for setting up or expanding telecom manufacturing facilities. In 2009 major car manufacturers would invest $2 billion in and around Chennai. These firms had signed memorandum of understanding with the Government.
The break-up
Committed investment by electronics hardware firms in Sriperumbudur is $520 million — Foxconn ($200 million), Flextronics ($100 million), Jabil Green Point ($80 million), Sanmina ($70 million) and Aspocomp ($70 million). The investment by Nokia and Nokia-Siemens are $250 million. Samsung and Dell propose to invest $40 million and $60 million respectively.
Hyundai has committed to invest $800 million as part of its expansion programme of its car manufacturing facility. Nissan would invest $450 million, while Ford, Renault, Mahindra and Mahindra are contemplating investments of $400 million each. The total installed capacity of these players would go up to 1.45 million cars a year.
”There is tremendous opportunity for Australian production firms to invest in India infrastructure projects, IT, ITES and engineering services,” he said.
In his welcome address, IACC Chennai director C Sarat Chandran called for setting up of Indo-Australian committee to attract investment in software and business process outsourcing sector. “This committee should have representations from Australian firms in India and Indian firms in Australia, members from IACC and Government officials.”
Around 4,000 firms are waiting in the wings to invest in India. To lure at least 1 per cent of them to invest in India by 2008, we are leading a delegation to Perth, Sydney and Melbourne from November 10 to 17. We think it is an achievable target,” he said.
