Clutch-maker Setco plans Rs 300 cr investment to up capacity
The Mumbai-based auto components-maker expects to grow at about 20% in FY20
Setco Automotive, the third largest clutch manufacturer for the commercial vehicles, plans to invest Rs 300 crore over the next three years to ramp up capacity and other activities, chairman Harish Sheth has said.
The Mumbai-based auto components-maker, which claims to enjoy 85% market share in the domestic MHCV (medium heavy vehicles) clutch segment, also expects to grow at about 20% in FY20.
With four manufacturing facilities at Kalol in Baroda and Sitarganj in Uttarakhand and one each in the US and Britain, Setco lists Tata Motors, Ashok Leyland, Bharat Benz, Mahindra & Mahindra and Volvo-Eicher as major clients supplying clutch discs and clutch covers.Besides, the company has two R&D centres in Baroda and Britain besides a foundry in Baroda.
Of this, Rs 120 crore will be invested in the foundry subsidiary LavaCast, and Rs 150-160 crore will be invested in other activities, including capacity expansion, setting up of a heat treatment and press shop, among others, chief executive JS Gujral said.
“This investment is for over three years starting with Rs 50-60 crore in FY20 and then scaling it up in the subsequent years,” he added.
The company had reported around Rs 8 crore net income on a revenue of Rs 160 crore in the December 2018 quarter. Recently, the company also made foray into the farm equipment sector with clutches for tractors.