Shortage of skilled workers forces AVR Valves to seek automation

For its upcoming capacity expansion, Rajkot-based AVR Valves Private Limited is focusing on bringing in automation for saving costs. As part of its expansion plans, the company will invest about Rs 10-15 crore for technical upgradation in the next financial year.

"The Rajkot-based valves industry is growing quickly. Yet a major problem that we are facing is the availability of skilled labor. This has forced to move towards increased automation by bringing in state-of-the-art machinery," said RK Jain, chairman and managing director of AVR Valves.

The company had in fact sought to raise funds through an initial public offering (IPO) last year to fund its automation plans. "We planned to raise money from equity market as automation is costlier than acquiring labour. But due to poor stock market we had to think otherwise. Hence, for now we are managing funds through our internal resources and financial institutes," said Jain, adding that the company has postponed its plans to enter the capital market.

Further, the company will set up an automatic transport line unit in Metoda GIDC which will help AVR to survive manpower shortage.

From its current turnover of Rs 20 crore, AVR Valves is expecting to grow to Rs 30 crore in 2012-13.

At full commissioning, the company's manufacturing unit's production will increase five to six times from current five million valves to 30 million valves per annum. The company exports over 70 per cent of its total production to European countries.

With manpower of 300, the company manufactures all types of intakes and exhaust engine valves for car, trucks, tractors, motorcycles, stationery diesel engines for agriculture and generating sets marine engines, heavy duty diesels and earth moving machines.