Chennai, July 21 (IANS) City-based automotive brakeling manufacturer Rane Brake Lining will expand its Hyderabad and Tiruchirapalli plant capacities to meet the export and after market demands, a top company official said Wednesday.
‘The expansion will be made at an investment of Rs.30 crore. The funding will be a mix of debt and internal accruals,’ Chairman L. Ganesh told reporters on the sidelines of the company’s annual general meeting here.
The other two places where the company has production facilities are Chennai and Puducherry.
According to him, the current capacity is sufficient to meet the demand of the original equipment manufacturers (OEM) leaving little capacity for meeting exports and replacement market demands.
The Rs.236 crore company is also planning to increase the production of asbestos free brakelings to 70 percent from the current 59 percent in line with the demand made by its clients.
While asbestos free brakelings will increase the topline growth, the margins will be tight.