Auto AC maker Subros plans facility in chennai

The company would invest close to Rs 100 crore over the next two years to expand capacity by 50 per cent.

Subros Ltd, an automobile air conditioning systems maker, said on Friday that it is looking for a new site to open a plant in Chennai.

Expected to be opened this year, the new plant would supply ACs for commercial vehicle manufacturers.

Mr Ramesh Suri, Chairman, Subros Ltd, told Business Line that the company would invest close to Rs 100 crore over the next two years to expand capacity by 50 per cent. Of this, Rs 48 crore is being invested in this fiscal itself.

“Given the phenomenal growth of the auto industry and the large amount of new business we've got, we have now planned to increase our total production capacity in phases to 1.5 million units a year by 2011-12 from the current one million. This will be financed through our internal accruals as well as bank loans,” he said.

With a 42 per cent market share, Subros expects its turnover to grow 10 per cent this fiscal, crossing Rs 1,000 crore. By 2015, it hopes to attain a turnover of Rs 2,500 crore, Mr Suri said. It posted a turnover of Rs 960 crore in 2009-10.

The company has an R&D and production centre in Noida, besides plants in Pune and Manesar. It recently set up a plant in Sanand for the Tata Nano.

Our Bureau New Delhi, Aug. 27