The Hindu : Business : Ennore Foundries to focus on non-group business

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Saturday, Apr 29, 2006

Business

Business

Ennore Foundries to focus on non-group business

Special Correspondent

Sets up a greenfield foundry at Sipcot complex in Sriperumbudur

CHENNAI: Ennore Foundries Ltd., an outfit of the Hinduja group, is planning to increase the share of non-group business in its revenue to around 60 per cent over the next couple of years. Currently, the non-group business accounts for 35-40 per cent of the company's revenue.

Addressing a press conference here on Friday, V. Mahadevan, Managing Director, said the proposal should be read in the context of all three segments (commercial vehicles, cars and tractors) where Ennore Foundries was present showing buoyant growth. "There is no market issue. We have only capacity constraint,'' he added.

In this context, he pointed to the current exercise to ramp up capacity in all its three units at a capital outlay of around Rs. 30 crore.

The company, he said, had also begun to export products in a limited way. It was planning to export 3,000-5,000 tonnes this year. Ennore Foundries was also setting up a greenfield foundry at Sipcot complex in Sriperumbudur at an investment of Rs. 120 crore.

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