Auto parts maker Amtek Auto has brought down its debt to about INR 3,000 crore after it redeemed USD 250 million foreign currency convertible bonds.

Mr Santosh Singhi CFO of Amtek Auto told Reuters that "We will repay a huge portion of our external commercial borrowings from 2013-2015.” He added that "By 2015 we will almost become a net debt-free company."

Mr Singhi said that Amtek Auto also hopes to boost its revenue multi fold to about USD 3 billion by 2015, helped by a robust domestic market. He added that "We have got enough capacity. We can multiply our sales from here without much capital expenditure, or acquisitions. We can go up to USD 3 billion.

Mr Singhi said that there were no immediate plans to raise funds to boost capacity as the firm was trying to maximize its current capacity utilization levels.

Though auto sales growth in India is slowing of late, there is still a shortage of supply from vendors due to supply side capacity constraints and the outlook for the auto ancillary sector is robust.

(Sourced from Reuters)