'We want to be a full-service supplier'. He loves to jog whenever he can spare the time and when he's traveling, which is often, Amol Chitnis, co-founder & director, Reliable Autotech Pvt Ltd., makes it a point to meet people and look at new ways of doing things. Along with his two partners, he is looking at ways to brand the company.
How did you get into this business?
Rajendra Bagwe and Devendra Bapat are not just my partners, but also college mates. Three of us went to the same college in Mumbai started this company together in 1985.
While, Bagwe takes care of the general management and production in the company, Bapat looks after finance and I go after marketing related issues as the company is growing fast.
Today, we employ nearly 500 people and have become global player from being only a domestic supplier. We have three plants in Nasik and the fourth is coming up in Pune. Reliable has grown at rate of 45 per cent for last five years and is set to achieve a turnover of Rs 100 crore by March 2007, representing a 30 per cent increase. We supply to players such as Mahindra & Mahindra, John Deere (US & Europe) and cater to many in developed countries. Our range includes stamped components and assemblies.
Your expectations from the Budget this time?
I expect a level playing field in tax, and in terms of the benefit structure that could bring Indian manufacturers at par with competing companies in China.
Also, export benefits should be in line with the value addition made by the industry, i.e. a component manufacturer/exporter should stand to benefit more than the steel exporter "� as we are value adding to the metal. I think auto component export is not seriously though of as a potential employer or a growth engine industry. For example, FBT is unfair on a genuine exporter.
SEZ policy also needs to be thoroughly examined and put out clearly and its tax structure should be in line with what is being proposed in a state like Uttaranchal. This will create level playfield for manufacturers across India and we can be good domestic and global player.
Your plans in tapping funds for growth?
There is a possibility of us to go in for an IPO in medium term, before that we are also exploring the option of private equity or a venture capital. Of course, the company believes in keeping the debt route open and leveraging equity funds and subsequently opting for the debt route.
Is your segment recruiting in a big way?
Indian companies are following the trend of overseas rivals and are today fast in introducing new models. Enquiry handling has become a very prominent function in our business, so is marketing, and players across are seeking such talent inputs.
Finally, your plans for future?
We want to be full-service supplier and offer value added services to customers, i.e. services from product engineering, process engineering to manufacturing.
Secondly, we want to enter into proprietary product manufacturing wherein Reliable designs, develops and tests its own products. In this we are seeking technical tie up or a JV. Reliable already has one technical license agreement with a Spanish company for supply to Mahindra Reno.
Finally, we want develop strong domestic and overseas customer base to participate in all new product development and we want to establish our brand and it should stand for reliability.
