Precision Camshafts Limited (PCL), a leading Indian manufacturer of camshafts which are used in the automobile industry, is undertaking a capacity expansion from 13.5 million camshafts to 30 million by 2017.

The Solapur-headquarter company makes 150 types of camshafts and claims an 8 per cent global market share in its category of automobile engines between 1-2 litres.

The expansion entails an investment of Rs 300 crore which, according to Yatin Shah, Chairman & MD, PCL would be funded through “internal accruals and conventional funding”.

Over the next twelve months, PCL is looking to buy an outfit in Europe. “The size of the buy would be up to $ 50 million and it will cater to the European market and service customers,” he told this correspondent.

At a press conference, PCL announced a strategic alliance with EMAG Germany to acquire Assembled Camshaft technology which uses `Force Free Heat Shrink’, a process patented by EMAG. The Assembled camshaft facility would absorb half of the planned investment.

PCL will have the exclusive rights to this new technology worldwide. Assembled camshafts are mainly used by manufacturers in Europe and China and are stronger and lighter than conventional camshafts. They improve automobile fuel efficiency and reduce emission, Mr. Shah said.

PCL’s 4 million unit Chinese facility will be commissioned in 2015.

It makes 12 million ‘chilled cast iron’ camshafts annually and added `Ductile iron induction hardened’ camshafts to its range. “Now with the introduction of assembled camshafts, we will be the only camshaft manufacturer in India offering a one-stop-solution for camshafts needs of mid-size cars globally.”

The plan by 2017 is to make 19 million chilled cast iron camshafts, a million assembled camshafts and 10 million Ductile camshafts by 2017, by which time, the company has targeted a turnover of $ 250 million.

Exports account for 85 per cent of sales and it is the preferred supplier to brands like Porsche, Ford, BMW, GM, Fiat, Hyundai, Tata Motors, Maruti and Mahindra.

More In: Industry | Business