Saturday, 23 July 2011

Ring Plus Aqua to invest Rs 200 crore to expand auto components business

Ring Plus Aqua Limited, a part of the Raymond group, plans to invest Rs 200 crore to expand its automotive components business. The company's product range includes Flywheel Starter Ring Gears, Flexplate Assemblies, Integral Shaft water pump bearings, Precision Sheet metal components.

The company plans to enter the forging segment, most likely through an acquisition, and plans to manufacture components ranging from connecting rods to axles. The company also plans to invest around Rs 20 crore for expanding its production capacity from 3 million units to 4.5 million units by September 2011.
Ring Plus Aqua supplies starter rings to Honda, Hyundai, Ford and Tata Motors in India. According to media reports, the company is expected to begin supplies to Mercedes-Benz and BMW by December this year. Its flex plate assemblies, used for automatic transmission vehicles, are primarily supplied to overseas global giants. Ring Plus Aqua manufactures its automotive components at two separate locations in integrated factories at Sinnar near Nasik.

There was a 52% growth in the group's Auto Components Segment in FY11 at Rs. 132 crore compared to Rs. 87 crore in FY10.

For the year ended March 31, 2011, Export market has been the key driver for the quarterly as well as the yearly sales. The year witnessed an Increased share of business from overseas customers. The Sales were up by 14% during the quarter. The company plans Capacity expansion to add Ring Gear and Bearings, planned to be commissioned by Q3FY12.

The gross turnover of the Company for the year ended March 31, 2011, was Rs. 116.55 crore (Previous Year: Rs. 81.74 crore). Profit after Tax was at Rs. 11.29 crore (Previous Year: Rs. 5.08 crore). With significant growth trend in the Auto Industry, the Company crossed the milestone of gross sales turnover of Rs.100 crore during the year under review.

The Gear sales showed significant growth during the year under review and were higher by 58% at Rs. 73.21 crore as compared to Rs. 46.30 crore in the previous year. The export sales have doubled and domestic sales have recorded good growth of around 22% compared to previous year. With growing demand, the Company has decided to augment its capacity by 1.5 million gears during the year under review, to take total Ring Gear capacity to 4.5 million per annum. The capacity expansion is progressing as per schedule and is expected to be complete by September 2011.

The sales for Bearing Division were marginally higher at Rs. 26.55 crore as compared to the previous year when it was Rs. 25.73 crore. USA continued to be the major market for Bearing exports.


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