Dhoot Transmission, the auto components manufacturer, has forayed into the electro-mechanical and electronic switches for the two and three-wheeler industry through an equal JV with the US-based a Carling Technologies, with an initial investment of Rs 65 crore for a 1-million unit factory.
The Aurangabad-based firm, which is also in the final stage of acquiring a wiring harnessing firm in Europe this fiscal with ticket size of Rs 100 crore, is also eying to increase its overseas sales to 25 per cent from the present 18 per cent.
“We are targeting our sales revenue to grow to Rs 650 crore this fiscal and touch Rs 900 crore next fiscal on the back of the incremental revenue from the JV,” Rahul Dhoot, MD, Dhoot Transmission told Financial Chronicle.
The joint venture will cater to the fast growing two-wheeler and three-wheeler market, as well as commercial vehicles, agricultural and construction equipment segments. It will also be exported overseas through Carling’s global distribution network, the companies said in a statement.
The JV partners said the greenfield facility coming up on an 8-acre plot in Aurangabad in Maharashtra will be operational in the first half of 2018 and will employ around 300 people in the first phase. “The staffing will touch 1,000 over the next three years as it sees a massive growth in demand for its products with the introduction of BS-VI emission norms by 2020,” Dhoot said. Though the JV partners refused to share financial details, industry sources said in the first phase the partners will invest Rs 65 crore which will go up over the next three years to Rs 100-150 crore.
Dhoot is amongst the top four in the over Rs 6,500 crore domestic wire harnessing segment with over 30 per cent market share in the two-wheeler industry and a sizeable pie of the commercial vehicle industry. The Connecticut-based Carling is a global leader in circuit breakers, switches, power distribution units, digital switching systems and electronic control switches.