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Ennore Foundries, a member of Hinduja group, is expanding its capacity through a new facility at the greenfield site at Sriperumbudur, near Chennai, said V Mahadevan, its managing director.
Speaking about the expansion plans, Mahadevan added that the main equipment installation was nearing completion and commercial production was expected to commence during the second quarter of FY 2007-08 as planned.
The new facility, equipped with state-of-the-art technology, would further enhance production capabilities for products, especially at the higher end of the value chain, viz., cylinder blocks and heads, to meet future emission norms. Addition of. this capacity at the greenfield site will enable the company to service the domestic customers better by meeting their anticipated increased needs of castings.
This will also enable the company to dedicate around 40 per cent of the capacity for exports in view of the huge potential available.
The Design Centre at Sriperumbudur, expected to be in operation by the end of first quarter of FY 2007-08, would enhance product design and development capabilities and will also shorten the developmental cycle time, to make product offerings faster. The technology upgradation and capacity optimisation in the existing units are progressing satisfactorily as per plan. The installation of new facilities to produce heavier castings is nearing completion at the Ennore plant and is expected to be in operation during the 2nd quarter of FY 2007-08, widening the product segments, said
Mahadevan.
Ennore Foundries has registered a jump in net profit during the fourth quarter ended March 31, 2007, at Rs 66.58 million, compared to Rs 46.32 million posted in the corresponding quarter of the previous fiscal. The increase in profit was mainly due to enhanced delivery of castings with higher realisations made possible through the enlarged production of higher-end products.
The total revenues of the company for the 4th quarter were up 30 per cent at Rs 1,106.74 million (Rs 848.93 million). For the financial year 2006-07, net profit was up by 16 per cent at Rs 161.65 million (Rs 139.63 million). The total revenues for the year under review registered a 19 per cent growth to Rs 3,981.19 million (Rs 3,355.42 million).
“This has been a year of continued growth. The demand for castings remains buoyant and we believe this growth momentum can be sustained,” added Mahadevan, after announcing the company’s results.
R Rangaraj
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