Brakes India, a major supplier of automotive braking systems, is considering setting up a new plant in one of its existing premises in Tamil Nadu, Andhra Pradesh or Gujarat to meet future growth, said MD Sriram Viji.
“Currently, we are in the process of setting up a new plant in Thervoy Kandigai, near Chennai, by investing ₹100 crore,” Mr. Viji said. The plant, which would manufacture products for commercial vehicle braking systems, was expected to become operational in three months time, he observed, adding that the products were currently in the process of getting validated.
According to Mr. Viji, the company had been posting high growth due to a good order book position and the introduction of new products.
“The factories are expected to run out of capacity in 18 months time... we are looking at expanding the capacity within our premises either in Tamil Nadu, Andhra Pradesh or Gujarat,” he said.
On the company’s prospects, Mr. Viji said that over a five-year horizon, Brakes India expected to double sales in the domestic market and grow fivefold in the export market due to volume growth and product content.
Last fiscal, Brakes India along with its associate companies posted a total turnover of ₹5,500 crore, of which exports accounted for ₹1,400 crore. The company is a big supplier of safety critical braking systems to Europe, which accounted for export revenue of ₹1,000 crore. It is also exploring opportunities in Southeast Asian countries.