DCM Engineering to set up Rs 200 cr plant in the south

Punjab-based DCM Engineering Ltd is planning to set up a new unit in southern India with a proposed investment of Rs 200 crore within next two years.

"We have plans to establish a new plant in the southern part of the country. We will select one state out of Tamil Nadu, Karnataka and Andhra Pardesh for setting up our new manufacturing facility of an annual capacity of 50,000 tonne of castings," DCM Engineering Limited, managing director, Keshav Sachdev said.

The company will either launch an IPO (initial public offer) or adopt strategic investment route in a bid to fund the ambitious expansion project, Sachdev said. The company has proposed to set up this new project with an objective of catering to growing customer base in southern states.

Moreover, it would also be convenient for the company to export its products from southern ports, said Sachdev.

DCM Engineering, having a plant in Ropar district of Punjab, is also targeting to achieve a turnover of Rs 300 this fiscal as against Rs 250 crore last year.

It will infuse a sum of Rs 20 crore for raising the capacity of its plant from 50,000 tonne to 70,000 tonnes of castings in this fiscal. "We wish to raise annual capacity of our plant in Punjab to 70,000 tonne," said the MD.

DCM Engineering, a manufacturer of engine blocks and cylinder heads, supplies its products to Hyundai, Maruti, Hindustan Motors, Swaraj Mazda, Eicher Motors, Ashok Leyland, Mahindra & Mahindra, Sonalika etc.