Atul Auto To Double Its Capacity

By vicky.in

Published: Tuesday, November 16, 2010, 12:42 [IST]

Now is the time for auto makers to increase the production capacity in a bid to meet the demand. Quite along with other makers, auto maker from Gujarat, Atul Auto is on the verge of increasing its capacity to 48,000 annual units from the current 24,000 units. The company is highly on the competitive wing against TVS, Mahindra & Mahindra, Piaggio and Bajaj. With the annual turn over of Rs 100 crores, Atul Auto is in the market with its 16 models. Atul is aiming to double this capacity by next year and the company"s director said there is a demand for the three wheelers in the domestic market.

This move, at an investment of Rs 30 crore, will materialize with the expansion of the existing facility in Rajkot, while the earlier move was to install a facility in South India. He said the accumulation of fund for this project will be from rights issue and internal sources. In another move, Atul Auto is increasing its dealer network too from the existing 100 to 120 before the end of this fiscal. As the last year"s turn over tipped Rs 120 crore, the target for this year has been set as Rs 175 crore. Atul Auto is releasing some Rs 70-100 crore for acquisition process whereby it seems there will be a 51 percent stake in Scooters India of the Indian government under divestment.

Article Published On: Tuesday, November 16, 2010, 12:35 [IST]

Read more on: #automobile #indian car market #mahindra

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