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Home arrow Automotive arrow Atul Auto Ltd. to increase production capacity, eyeing acquisitions
Atul Auto Ltd. to increase production capacity, eyeing acquisitions Print E-mail
Written by Vijay   
Tuesday, 16 November 2010
Mumbai: Atul Auto Ltd., based at Shapar (Rajkot-Gujarat), a manufacturer in front engine diesel 3 wheelers, is planning to increase its production capacity from 24,000 units to 48,000 units at an investment of nearly Rs. 30 crore.

The Company had produced 8581 vehicles in the first half of current fiscal - 2010-11 as compared to 4720 vehicles in corresponding period last year, achieving an 82 per cent growth. The Company expects to grow 50 per cent in the next 3 years subject to exceptional circumstances.

Atul Auto is planning to grow Inorganically by acquisition of any unit from Auto or Auto component sector. The Company is in preliminary discussion with few investment Bankers and is planning to invest an appropriate amount as suggested by investment banker for the proposed acquisition. The Company expects to complete identification of any such available unit sometime in year 2011.

The Company has also shown interest to acquire stake in Scooters India Ltd., if available for sale. In this regard , one of the Directors of the Company had met the Union Minister of Heavy Industries and expressed interest. Atul Auto is awaiting a response on this issue from official sources.

At an investor meet arranged by the Andhra Pradesh Government, Atul Auto had raised it's requisition for land. The company did not official information from the state government so far.

The capacity expansion at its existing site in Gujarat is expected to be done by December 2011. With capacity expansion & new acquisition plans on the anvil,  Atul Auto Ltd expects to achieve total turnover of Rs.1000 crores in next five years. Last year the company registered a turnover of approximately 120 crores and this year it expects to register a turnover growth of nearly 46 per cent.

 
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