Shriram Pistons Chalks Out Rs 110cr Expansion

Leading piston manufacturer Shriram Pistons and Rings Ltd has chalked out a Rs 110-crore investment plan to increase production and exports, a company official said yesterday.

To begin the three-year investment plan, the company will invest Rs 35 crore this year and will look for a green-field site for expanding current production levels, senior executive director of the company A K Taneja said here.

Shriram Pistons registered a 46 per cent increase in net profit in 1996-97, aggregating to Rs 10.1 crore as against Rs 6.9 crore in 1995-96.

The companys turnover also grew by 45 per cent to Rs 151 crore in 1996-97 as against Rs 105.6 crore in the previous financial year, he said.

 

At a board meeting two days back the company decided to declare a bonus issue at 1:1, said Taneja.

He said the additional investment, which follows a Rs 100 crore investment in the last three years, will be financed through internal accrual, debt and preference shares.

The first tranche of investment will consist Rs 21 crore through borrowings and Rs 14 crore through reserves and preference shares.

We are also looking at external commercial borrowings (ECB) as it is a low cost option for us due to the very high level of exports the company is into, he said.