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As part of its strategy to serve its customers better in the western sector, the company intends to set up new plants in that region. “We are expanding our business and are looking at Lucknow and Pune for new units. These plants will come up over the next two years,” P Kaniappan, whole-time director, Wabco-TVS India told Financial Chronicle.
“We are presently preparing the study and will be in a position to finalise our plans by the end of the year,” he added.
Meanwhile, the company has also planned a capex of Rs 35 crore for the present financial year to expand the capacities at its existing plants. “We need to create some specific assembly and additional capacity to support the demand growth,” he said.
Wabco-TVS expects 15 per cent growth during the present financial year in line with the growth outlook of 15-20 per cent for medium and heavy commercial vehicle sector. With its latest facility at ‘Mahindra World City’ near Chennai reaching full capacity, the company expects additional revenue growth in future.
The company also expects strong growth in exports, driven by the cost management factors of international manufacturers to source from cost-effective countries such as India. Wabco-TVS’ parent company Wabco Vehicle Control Systems intends to make its Indian operations a component-sourcing hub for global requirements. Exports turnover grew to Rs 55 crore in 2009-10 from Rs 35 crore in the previous year. “We expect strong growth this year too as prospects are bright,” said Kaniappan.
The company recorded all time high net sales of Rs 609 crore in 2009-10 as against Rs 446 crore in 2008-09, registering a growth of 37 per cent. Profit before tax grew by 127 per cent at Rs 118 crore as against Rs 52 crore in the previous year. During the April-June quarter, it posted net sales of Rs 197 crore (Rs 96 crore in the year-ago period) with a net profit of Rs 28 crore (Rs 8 crore).
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