| Indore-based Porwal Auto Components, which is set to hit the capital market on December 17, is mulling exports of its automotive products.
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| The company currently sells its products to automobile players in India and is now planning to export them to Germany within a year after an automobile manufacturer expressed interest.
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| If the products receive the nod from the German company after the testing process, which could take anything from 6-8 months, the company might start exporting after March 2008.
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| In the coming years, the company plans to export 20 per cent of its production of SG and CI castings to the automobile sector for application in the commercial vehicle segment.
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| The company plans to increase the capacity of SG and CI castings from the existing 6,600 tonne per annum to 27,600 tpa and set up a windmill with a power generation capacity of 1.5 Mw for captive consumption.
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| For this, the company will enter the capital markets with an initial public offer of 5 million equity shares.The price band of the Rs 10 face value share is Rs 68-75 per share.
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| The issue closes on December 20. The issue would constitute 33.11 per cent of the post issue paid-up capital.The company plans to gradually increase the supply of finished castings.
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| Industry estimates suggest that production of auto ancillaries has been growing at 20 per cent annually since 2000.
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| If this growth is sustained for another five years, it will see India’s auto components exports touch $5 billion by 2011 from the present $2 billion , said Devendra Jain, MD, Porwal Auto Components. |
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