Auto components maker Shriram Pistons and Rings today said it will invest about Rs 700 crore over the next six years at its proposed new plant in Pathredi (Rajasthan).
"The first phase of the plant will involve an investment of Rs 200 crore and it will come on stream in January 2011. After that we will put in about Rs 100 crore annually over five years to augment capacity," company's Chief Executive Officer and Managing Director Ashok Taneja told reporters here.
Speaking on the sidelines of a CII event, he said the investment will be made from the company's internal accrual and debts.
Shriram already operates a facility at Ghaziabad with an installed monthly capacity of 12 lakh pistons, 55 lakh rings and 20 lakh engine valves.
"To begin with, our new plant will have one-fourth of the capacity of the existing facility. With further investments, we will increase the capacity to par with the Ghaziabad plant within 2016," Taneja said.
The company is looking to cross the Rs 1,000 crore turnover mark in two years, from Rs 725 crore now.
"We should be reaching the Rs 1,000 crore figure in two years and the new plant will play a major role in it," he said.