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Home arrow Business News arrow NEI to invest Rs 500cr in 5 years to increase bearing manufacturing capacity
NEI to invest Rs 500cr in 5 years to increase bearing manufacturing capacity Print E-mail
Written by Anand   
Wednesday, 30 November 2011
New Delhi: National Engineering Industries (NEI), a CK Birla Group firm engaged in bearing manufacturing, plans to invest around Rs. 100 crores annually for next 5 years for capacity enhancement in existing three plants and setting up the fourth plant besides increasing spend on R&D to 1% of its turnover. The fourth plant will be located at Gujarat & Karnataka, for which the due diligence in being conducted.

The company plans to invest up to Rs 1,250 crore (including Rs 150 - 750 crore for acquisitions) in the next five years to double production capacity and to acquire an overseas company. NEI is scouting for companies in Europe and the US with an annual turnover of Rs 100-500 crore. NEI has been in discussions with potential target companies and a deal is expected to be finalised soon.

The company currently has a total installed capacity of 80 million bearings per year, at its two plants in Rajasthan at Jaipur and Newai, and one at Manesar in Haryana.  It aims to double this number to 160 million bearings per year.

"As part of the aggressive growth plans, we are considering acquisitions besides organic growth with new and innovative product introductions at higher frequency. R&D continues to be a key focus area and we intend to increase spend to 1% of the turnover," said Rohit Saboo, President and CEO, NEI.

Increased R&D spends will be utilized for regular technology upgradation and setting up new research labs for encouraging innovation in product development. The key focus areas include Application Engineering, Product Testing, Product Engineering, Advanced Product Technology, Advanced Manufacturing Technology, Advanced Material Technology, Modeling & Simulation & Tribology.

The company registered a revenue of Rs 1,051 crore last fiscal and it expects to close this fiscal with a revenue of about Rs 1,200 crore. It aims to achieve Rs 2,000 crore sales by 2015-16.

NEI unveiled its new brand logo in sync with its brand transformation and dynamic business strategy.

"In keeping with the fast paced transition in the business scenario for customer over the recent years, we offer diverse and energy efficient world class products with highly flexible approach. Improving the operational efficiencies of our customer’s business with innovative and technologically advanced products at competitive pricing is our core proposition, and is reflected in the transformed brand identity," said Rohit Saboo.

 
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