Escorts Ltd is setting up a Rs25-crore manufacturing facility at, Pantnagar, Uttaranchal to manufacture auto components and railway equipment.
Escorts manufactures shock absorbers, telescopic front forks and McPherson struts for the automotive sector. In railway equipment the company manufacture shock absorbers for rolling stock, couplers for suburban and mainline EMU trains, braking systems and composite brake blocks. These are currently being manufactured in the facilities of the company in Faridabad, Haryana.
Nikhil Nanda, executive director, Escorts ltd, said, "Considering the ample scope for volume growth in both the sectors, we have been aiming to further leverage our manufacturing strengths. As part of our growth strategy, we would like to have a much greater contribution from these segments in our operations."
Escorts says it has planned to significantly widen its product portfolio in the auto component sector and is considering new partners and new export markets. In railway equipment, it is entering products of new technology rolling stocks.
The Indian auto component industry, estimated at around $10 billion, is witnessing a tremendous growth and expects to touch $40 billion by 2014 at a CAGR of 17 per cent.