Auto component maker National Engineering Industries Ltd (NEIL), a C K Birla group firm, is investingRs 100 crore over the next three years for producing needle roller bearing at its Jaipur facility, according to a top company official.
The company, which is entering the needle roller bearing segment with the help of NTN Corporation's licensed technology, expects sales from the vertical to be around Rs 50 crore in the next year and subsequently scale it up to Rs 100 crore.
"Now that we are entering into this needle roller bearing segment, we have a complete portfolio. This was the only piece missing in the automotive segment. In the needle roller segment, we will be investing about Rs 100 crore specifically in the next three years," National Engineering Industries Ltd (NEIL) Presidentand CEO Rohit Saboo told PTI.
He said the company has an ongoing overall capex plan of Rs 330 crore in three years and the investment in needle roller segment will be a part of it.
When asked about expectations from the new segment, Saboo said, "This year it will be rather small because there will be some trial and testing done. From next year, we are looking at starting from Rs 50 crore and subsequently going up to Rs 100 crore."
On the overall market conditions, he said, "In the new fiscal people are expecting that upturn will come in the second half of the year, especially around Diwali."
Overall, he said, "We are still bullish that tide will turn very soon, maybe end of the year or early next year and then the requirement will go back again up."
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