The Hindu Business Line : Sakthi Auto may hasten investment to meet demand

THE demand for auto components, both from its existing clients and new ones, has prompted Sakthi Auto Components Ltd (SACL), a subsidiary of Sakthi Sugars, to alter its investment plans for expansion.

A senior official of SACL, who spoke to Business Line in October, said that the company was planning to invest another Rs 35 crore, but would look at the investment plan only in January 2007. But the aggressive growth in the auto sector and the deals that the company had subsequently inked with Auto Chassis International (ACI) and General Motors had forced SACL to take a re-look at its investment plans and infuse funds at least a month ahead of schedule.

SACL's Managing Director and Vice-Chairman of Sakthi Sugars, Mr M. Manickam, told Business Line that Rs 20 crore would be pumped in at the earliest to enable the company to keep its commitment.

Large order: Sakthi Auto has received an order worth about Rs 7 crore from General Motors and an order of a similar size from ACI. "We are in discussions with GM for a fairly large order," he said.

The company is gearing up to meet the supplies by laying dedicated lines. It has about 12 specific lines now and is planning to add three or four new ones.

"The work has been initiated," he said, adding that the production on the GM order would commence in June.

The company is supplying safety critical items such as brake drums and steering knuckles to Maruti, Hyundai, Honda and Delphi.

While discussions are on with Ford and Toyota, it has firmed up orders with GM and ACI. The existing orders and the new ones are expected to increase SACL's turnover by Rs 40 crore.

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