July 05, 2008

Hinduja Foundries plans INR 350 crore investment

PTI reported that Hinduja Foundries Limited will go in for an investment of INR 350 crore to increase its production capacity to 226,000 tonne in the next 2 to 3 years.

Mr Mahadevan MD of Hinduja Foundries said that apart from setting up a Greenfield unit at Hyderabad at a cost of INR 150 crore, it would also set up a low pressure aluminum foundry unit with a production capacity of 5,000 tonnes at Sriperumbudur at an investment of INR 50 crore. He added that it would invest INR 50 crore at its existing unit at Sriperumbudur to enhance the production capacity from 50,000 tonnes to 72,000 tonnes and an iron cast machining unit would also be set up at Sriperumbudur at an investment of INR 100 crore.

Mr V Shankar CFO of Hinduja Foundries said that "We will go for debt, equity and internal accruals to fund our expansion plans. Though 51.3% of our revenue is from Ashok Leyland, we are hoping to bring it down to 35 per cent by focusing on other customers." He added that it would maintain its focus on catering to the high end segments of Ashok Leyland.

Hinduja Foundries had registered 14% YoY growth in turnover to INR 451.42 crore in 2007-08 as compared to INR 395.24 crore in 2006-07. While, profit before tax had gone up to INR 25.90 crore, the profit after tax stood at INR 16.92 crore.