NEW DELHI: C K Birla Group company National Engineering Industries today (October 12,2010)said it will invest Rs 400 crore over the next two years to increase production capacity, which might also involve setting up a new plant.

Upbeat after winning the prestigious Deming prize for 2010 from the Union of Japanese Scientists and Engineers (JUSE), the company said it is scouting for acquisitions and is targetting companies that have turnover ranging between Rs 100 crore and Rs 500 crore.

National Engineering Industries (NEI) manufactures a range of bearings for automotive, railway and general industrial applications under the NBC bearings brand.

"Around Rs 400 crore will be invested in the next two years to enhance production of ball bearings as well as taper bearings at our existing facilities and perhaps on a new plant," NEI President and CEO Rohit Saboo told PTI.

The company has three plants, two of which are at Jaipur and Newai, in Rajasthan, and the third at Manesar, in Haryana.

"Our plan is to increase ball bearing production to eight crore units per year from the current four crore a year," he said, adding that the firm will invest Rs 200 crore towards achieving this objective in the current fiscal.

Saboo added that taper bearings production would go up to 1.2 crore units per annum from about one crore units a year at present.

"While our plants at Jaipur and Newai still have space for expansion, the Manesar one is small. So we may have to set up a new plant," Saboo said.

The company has already started scouting for locations in Rajasthan, Gujarat and Karnataka to set up the plant.

"By the end of this fiscal year, we should have something in hand (location), although our first preference is Rajasthan," he said.

Besides enhancing production capacity through organic expansion, Saboo said NEI is also scouting for acquisitions.

"Our target is those companies with a turnover ranging between Rs 100 crore and Rs 500 crore, so that the actual buy value is around Rs 50 crore to Rs 100 crore," he said.

The company, which supplies ball bearings to all major two-wheeler makers in India, including Hero Honda and Bajaj Auto , as well as car-makers like Maruti and Hindustan Motors , is also likely to add some original equipment makers to its list of clients in the near future.

"We are at advanced stage of discussions with Daimler and Tata Motors' passenger cars division. In the next six months, we expect things to be finalised," Saboo said.

On the means of funding the planned investments, he said the amount would be raised mainly through debt, as the company has the werewithal to raise up to Rs 400 crore to Rs 600 crore. He, however, ruled out any plans for a public issue.

Asked about revenue targets, Saboo said the company registered business worth around Rs 800 crore in the last fiscal and expects to register a revenue of around Rs 1,000 crore in the 2010-11 fiscal.

Other News:
NEI to Invest Rs 400 cr on Expansion in Next Two Years
Dana Holding Corporation Receives Top Honor at International f-cell Congress
Powered Up -Emerson Bearing's New Material Handling Division Keeps Cranes, Forklifts Going
SKF Charges SEK 150 Million to its Financial Net Due to Vendor Loan to Ovako
EnPro Industries Responds to Civil Complaint by Justice Department
BSA 2011 Annual Convention Celebrates 45 Years
Drive Technology Fast Becoming Industry Standard
Electrical Linear Actuators – Thomson's New Brochure Highlights the Benefits