Auto component maker Hema Engineering Industries today said its sales are likely to grow by about 30 per cent next financial year on contributions from joint ventures formed with two Italian firms.

"The market has recovered from slowdown. Also we have formed two new joint ventures, which will start contributing to our revenue from next fiscal," Hema Engineering Industries (HEIL) Managing Director Chandresh Jajoo told PTI at the 10th Auto Expo here.

HEIL has formed two joint ventures -- Verlicchi Hema Automotive and Sabo Hema Automotive -- with Nino Verlicchi and Sons and Roberto Nutti, respectively.

While Verlicchi Hema would produce steel and light alloy precision frameworks, Sabo Hema has been formed for rolling out shock absorbers for commercial vehicles, which would later target two-wheelers also.

Sabo Hema Automotive, the 50:50 JV, would start its production this month from Gurgaon plant, which has an installed capacity of 2.5 lakh units.

Jajoo said the company would invest Rs 35 crore to set up a new greenfield plant in Chennai for the JV by 2012, which would mainly cater for its export markets.

The company is expecting to close this fiscal at about Rs 450 crore, he added.

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