In a bid to cater the off-road vehicle industry, iron-castings manufacturer Nelcast is expanding its product base. The company is developing a range of castings for use in construction and earth-moving equipment. The range includes small and large castings for use in non-critical and critical applications, such as force transmission and load-bearing.
These castings are being developed at Nelcast’s foundries in Gudur (Andhra Pradesh) and Ponneri (Tamil Nadu). The two foundries have a total capacity of 1.5 lakh tonnes annually. At present, the company is operating at one lakh tonnes annually and looking at capacity optimisation at both foundries.
Heavy commercial vehicles account for 45% of Nelcast’s business, while tractors contribute 35-40%. The rest comes from the railways and other segments. Exports make up 5% of the business. Nelcast exports to Sweden, North America and Australia.
Further, the company has signed up with a few international players in the Indian market. There is also potential for exports. Some of the products could be commercially launched by the end of this fiscal year.
The company clocked sales of Rs 507.40 crore in the financial year 2011, registering a year-on-year growth of 59%. It recently announced a stock split to raise liquidity.
Company Name | CMP |
---|---|
Electrost Castings | 170.15 |
AIA Engineering | 3786.95 |
Kirloskar Ferrous | 562.55 |
Nelcast | 151.75 |
Alicon Castalloy | 849.00 |
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