Rico bags export order of up to 70 cr per annum

Rico bags export order of up to 70 cr per annum

New Delhi: Auto component maker Rico Auto on Tuesday said it has bagged an export order worth up to 70 crore annually to supply transmission to a global passenger car maker.

“We have recently got an export order to supply transmissions to a global passenger car maker, which is also present in India. The order size is 50-70 crore for every year and we expect to continue this for 7-8 years," Rico Auto managing director Arvind Kapur told reporters on the sidelines of the Automotive Component Manufacturers Association (ACMA) summit.

The company will supply both manual and automatic transmission and the shipment is likely to start from June 2012.

“We have not decided on the plants where we will produce this transmission but we may use our Sanand unit," he said.

Without elaborating, Kapur said the company will invest 30-40 crore in the next 2-3 years on the export project to augment capacity of its various plants.

On the domestic front, the company will invest 40-50 crore this financial year to expand capacity of its existing facilities.

When asked about the revenue, he said the company is expecting a turnover of 1,250 crore compared 1,015 crore last fiscal.

“We are targeting 10% margin this fiscal. Last two years, we had blip in our margins but before that we were (witnessing) 7-8% of profit margins," Kapur said.