Samkrg Pistons and Rings has begun a €5.45 million (INR300 million) capacity expansion programme which will enhance its piston manufacturing capacity from five million to six million a year and hike piston ring capacity from 15 million to 25 million units. The programme will take two years.
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Samkrg wants to meet increasing demand from current customers including Bajaj Auto, Hondo Motorcycle and Scooter India, TVS Motor Company, LML and Kinetic Engineering in the two-wheeler industry, as well as engine and generator makers Birla Yamaha and Kirloskar Oil Engines.
Exports have increased steadily and customers now include Piaggio of Italy, ACL in Australia, Derbi Nacional Motor S A in Spain and mower and small engine specialist Briggs & Stratton in the US.
Funding for the expansion is coming largely from internal accruals. The company booked sales of €14.4 million (INR794.6 million) and a profit of €1.26 million (INR69.3 million) last fiscal year.
This year’s target is a 15% growth in sales and a 20% rise in net profit. The focus is now mainly on exports with expected growth of about 70% over last year’s revenue of €1.54 million (INR84.9 million).
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By GlobalDataDeepesh Rathore / Tilak Swarup
