liners.
The plan follows agreements finalised by the company to supply brakes to new car projects being set up.
We have signed up with DCM-Daewoo, Pal-Peugeot, Fiat-Uno and General Motors India for the supply of brakes for their cars being manufactured in India, Baba Kalyani, chairman, Kalyani Brakes said.
Talks are on at an advanced stage with Mahindra-Ford and Hyundai for the supply of auto components.
To meet the new business opportunities, the company has decided to set up a manufacturing facility at Chakan, near Pune. The unit will serve car manufacturers in western India as well as the new entrants.
The total investment for expansion, in the first phase, involves Rs 35 crore and Rs 22 crore in second phase.
Kalyani Brakes sales is projected to touch Rs 300 crore by the year 2000, once all investments are in place. Sales for the six months ended March 31, stood at Rs 60.38 crore.
The company is targeting the Rs 200-crore per annum brake lining market.
Kalyani Brakes net profit jumped to Rs 3.56 crore during the half-year ended March 31 as against a marginal net profit of Rs 38.94 lakh in the previous year. The company, however, skipped dividend for the previous year.
Addressing the annual general meeting of Kalyani Brakes here today the chairman said he was confident of bringing down the accumulated losses of the company from Rs 6.87 crore to Rs 3.53 crore.
