The Hindu : Business : Fenner plans greenfield projects

Online edition of India's National Newspaper
Friday, Feb 17, 2006

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Business

Fenner plans greenfield projects

Staff Correspondent

To diversify into auto component sector

CHENNAI: Fenner (India) Ltd., a member of the JK Group and maker of v-belts, oil seals and power transmission products for both industrial and automotive sectors, has drawn up a Rs. 75-crore investment plan for greenfield projects and modernising the existing facilities.

Addressing a press conference here on Thursday, Raghupati Singhania, Chairman, Fenner India, said the company was planning to set up two greenfield plants at Chennai and Hyderabad with an investment of Rs. 40 crore. The Chennai plant with an outlay of Rs. 15 crore would produce 36 million oil seals per annum, while the Hyderabad plant with an investment of Rs. 25 crore would manufacture four million belts per annum. The construction of the two plants would be completed in 18 months, he said.

Mr. Singhania said the company was planning to pump in Rs. 35 crore over the next three years to modernise its existing facilities in Chennai, Madurai and Hyderabad. At present, it was making 18 million belts and 72 million oil seals per annum. With the modernisation programme, the production capacity of belts and oil seals would increase by 60 per cent and 50 per cent per annum, respectively.

Mr. Singhania, who was in Chennai for the Fenner (India) golden jubilee celebration, said the company was planning to diversify into the auto component sectors.

He said the JK Group had a significant association with the automotive industry through Fenner India and J.K. Industries Ltd. Now it had decided to widen its association with the launch of several new products such as engine mounting, automotive pulleys, and other rubber components.

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