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Setco Automotive to increase its manufacturing capacity Print E-mail
Written by Arjun   
Tuesday, 11 September 2007
 Mumbai: Setco Automotive Ltd plans to set up a new factory in the northern state of Uttarakhand for assembly of clutch parts. The company also plans to install a new press shop at its existing factory located at Kalol (near Vadodara -  Gujarat).
 Setco is a Tier I supplier of clutches to all major Indian commercial vehicle manufacturers with a customer base that boasts of names like Tata Motors, Ashok Leyland and Eicher Motors, among others and meeting majority market requirements for the prominent CV manufacturers in other geographies as well.  "Our old factory at Vadodara is already working at more than 100 per cent capacity and we needed more capacity. With the expansion and the new factory our capacity is expected to increase by 30 per cent," J.K. Nag, business director Setco Automotive Ltd. said.

 The new factory in Uttarakhand is expected to be operational by December 2007.

 Last year some of the vendors could not supply parts which resulted in a loss of revenue of around Rs 20 crore. Therefore the need for the press shop arose. This press shop is expected to meet 60-70 per cent of the captive requirements, exports and for existing customers.

 The press shop is expected to be operational by April 2008.

 The company plans to invest Rs 42 crore to increase its manufacturing capacity of clutch and clutch parts. The expansion will be funded through internal accruals and bank borrowings. The revenue is expected to rise by 15-20 per cent in the current financial year after factoring in the expansion at Uttarakhand.

 Setco, incorporated in May 1982, is the largest manufacturer of clutches for heavy and medium commercial vehicles in India and a market leader of Premium Quality Lipe Clutches for Medium & Heavy Commercial Vehicles (MHCV) in India and a major global player.

 Setco's ISO/TS 16949 certified manufacturing facility and registered office is located at Kalol (near Vadodara) Gujarat with the Corporate Office in Mumbai.

 Setco's consolidated net profit, for the financial year ended March 2007, was Rs 13.06 crore on revenues of Rs 185 crore.
Last Updated ( Tuesday, 08 January 2008 )
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