Precision Camshaft partners Germany's EMAG

Precision Camshaft, India's biggest camshaft manufacturer today announced a technical alliance with EMAG of Germany to acquire assembled camshaft technology.

The Maharashtra-based component provider will have worldwide exclusive rights to a new technology developed by EMAG, which is also patented.

Assembled camshafts which are used predominantly by the original equipment manufacturers of Europe and now in China, have increased strength of material and are lighter in comparison to conventional camshafts. Both aspects lead to improvement in fuel efficiency and reduction in emission.

Yatin Shah, chairman and managing director, Precision Camshaft said, "PCL, through this acquisition of this technology will be a complete solution provider for camshafts manufactured by different technologies".

Headquartered in Solapur, PCL manufacturers around 150 varieties of camshafts for the small and mid-sized passenger vehicle engines between 1-2 litre segment world over. PCL is privately held, unlisted company.

The company will make investments of Rs 250-300 crore towards to capacity expansion are research and development over the next two years. Much of that funding will come from internal accruals with the rest coming from banks as loans.

"We are raising output at our plant to 22 million units per annum from 13 million units per annum by 2017. We are looking at a variety of fund raising plans including an initial public offering", Shah added.

Presently 85% of the company's production is exported, servicing companies such as General Motors, Porsche, Ford and Toyota. In India the company supplies to Maruti Suzuki and Hyundai. The camshaft market in India is 1.5 million units per annum.

From around Rs 390 crore PCL posted a growth of 28% last financial year to close at Rs 500 crore. The company is confident of closing the current year at Rs 650 crore, a growth of 30%.