Setco Takes Steps To Meet Tata's Demand

By By: Vicky.in

Published: Monday, August 23, 2010, 11:00 [IST]

Setco Automotive Ltd., domestic supplier of Tata Motors is gearing up to produce more capacity by raising Rs. 1 billion within the next two years so as to meat the huge demand. Setco has been planning to expand the production capacity of Setco's plants in Baroda and Uttarkhand. Setco Automotive is setting up a factory in Kandla, Gujarat.

According to Chairman Harish Sheth, the Kandla facility will be functional from March 2011. He added that, the company is expanding and hence they can fulfill the demand rather than have supply short fall. He said that the Setco will raise money by increasing the capital and raising debt and some from cash on hand.

Setco's Chariman said that the company is confident of maintaining close to twofold profit growth in coming months. The net income of Setco Automotive in the during AprilJune increased double fold to Rs 52.5 million (USD 1.1 million) from a year earlier while sales increased 42%.

Top car makers Maruti and Hyundai have been facing challenges due to shortage of parts like engine castings, batteries and others. Tata Motors even started importing tyres from China so as to meet the demand.

Article Published On: Monday, August 23, 2010, 10:38 [IST]

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