Hinduja Foundries (formerly Ennore Foundries) raised its full year sales forecast in view of RELATED ARTICLES the pick-up in demand in the auto sector and favourable growth prospects in the second half of the present financial year. The company also plans to invest Rs 100 crore in establishing machining operations over the next two years.
The company, the foundry arm of the Hinduja Group, has been witnessing significant growth in demand from the commercial vehicle (CV) sector since September. It gets about 50 per cent of the revenues from the CV segment with Ashok Leyland accounting for 48 per cent and Tata Motors the rest. “We have seen at least 50 per cent recovery in order intakes from OEMs. The pick-up in demand from the OEM sector is sustainable over the next two quarters and we are seeing indications that the growth momentum will continue till March 2010,” chief financial officer at Hinduja Foundries, V Sankar, said.
The company expects the capacity utilisation level to go up to 70-75 per cent in the second half against the 40 per cent level in the first half. It is also investing Rs 100 crore in setting up machining facilities at its Sriperumbudur manufacturing complex over two years to meet customer requirements and for better value addition.