Pricol to set up auto component plants in Mexico and Vietnam
Pricol to set up auto component plants in Mexico and Vietnam
Coimbatore based automotive components manufacturer Pricol Limited plans to widen its international focus by setting up new plants and making acquisitions across the globe. According to managing director Vikram Mohan, the company would set up plants in Mexico and Viet Nam and looks forward to making acquisitions in Europe to access the market as part of its vision 2020.
"Mexico is expected to be the largest (automotive component) market by the year 2018. The project in Viet Nam is expected by the next calendar year," said Mohan who was speaking as part of unveiling Pricol's new brand identity. The 40 year old company currently has eight manufacturing locations and seven international offices.
Pricol' Vision 2020 comes following a long episode of labour unrest, low margins and huge debts. Also, in January 2015 as part of its global expansion plans, Pricol had acquired an automotive powertrain manufacturing company in Brazil, Melling do Brasil, a move which put the company on its backfoot.
"Unfortunately the economy went for a toss after that..We are hoping it will take five years to recover our investments," Mohan commented.
However the manufacturer's consolidated annual revenue for FY 2014-15 stood at Rs 1150 Crores. "This year in March we expect to close with a revenue of Rs 1450 Crores, which is almost 20 per cent growth," noted Mohan. "The vision is to attain Rs 3000 Crore revenue by 2020,"Mohan noted, revealing plans to raise around Rs 500 crore for the new plans and projects.
Pricol is also setting up its new plant in Pune which would be functional by May 2016. Currently around 40 per cent of the company's revenue is drawn from two wheeler industry and 30 per cent from the four wheeler segment. Tractors, off-road vehicles, three-wheelers and others contribute to the remaining.
