The Rs 400 crore turnover ductile iron castings major Nelcast plans to invest Rs 30 crore for expansion of its capacity.
A company press release said in order to meet the rising demand of its products, both domestically and internationally, Nelcast plans to further increase its capacity to 150,000 mt per annum from 126,000 mt by the last quarter of 2008.
Having started as an ancillary to Ashok Leyland, Nelcast has broadened its operations and widened its product range over the last two decades, to become a key supplier to the commercial vehicle and tractor industries.
It also manufactures large quantities of inserts and ribbed plates for Railways. Its present clientele, include TATA Motors, Ashok Leyland, Mahindra & Mahindra, TAFE, Eicher Motors, Eicher Tractors and International Tractors in the domestic market and Arvin Meritor, Dobbi Dicco and Wartsila in the international market, the release said.
During the last fiscal, Nelcast recorded sales of Rs 403.65 crore as against Rs 350.10 crore in the year 2006-07. The net profit increased by 32 per cent to reach Rs 26.02 crore, against Rs 19.77 crore in the same period.
Nelcast has now targeted a turnover of over Rs 600 crore and production of over 100,000 mt in 2008-09, the release said.