Atul Auto to invest Rs 100 crore in three years

Company to come up with rights issue soon.

Rajkot based BSE listed Atul Auto Limited will invest Rs 100 crore in phases in the coming three years. The company is also preparing for a rights issue that is expected to come soon.

“The company has several plans of expansion and for that we will invest Rs 100 crore in three phases during three years. We are going to set up a new unit for three wheelers and for that company will invest Rs 60 crore in this year. The unit will be set up in either Pune or Hyderabad”, said Jayanti Chandra, chairman and managing director, Atul Auto.

He added that, “We are also coming with right issue very soon. The size and the price for this issue will be finalized in the company’s board meeting.” A meeting of the Board of Directors of the Company will be held on June 25, 2010.

“The size of issue will be much much less than this year's investment. Final figure will be finalized in board meeting”, said, Vijay Kedia, director of the company adding that “The company’s production capacity will be doubled from 24000 units to 48000 units in two years.”

In the second and third phase company will invest Rs30 crore every year.

Atul Auto posted annual net profit Rs 454 lakh compared with last year annul net profit was Rs46 lakh, a 1000 per cent growth annual net profit.

In April and May this year Atul Auto has sold more than 2500 vehicles compared to same period last financial year when the company sold 1162 vehicles.

Atul Auto is among the five top three-wheeler manufacturing companies in the country and the largest in Gujarat with a manufacturing facility at Rajkot that has a net installed capacity of 30,000 vehicles annually.

Atul produces diesel as well as CNG operated three wheeled micro commercial vehicles. It also has an R&D center at Pune in Maharashtra.

Apart from 'Atul Gem', Atul manufactures, markets and exports both cargo and passenger three wheelers under the brand name 'Atul Shakti'. More than 200,000 Atul vehicles are currently running on the Indian as well as foreign roads.