Rajsriya Automotive Industries Pvt. Ltd., a tier-I supplier of sheet metal pressed components for the automotive industry, is setting up a plant in Mysuru to cater to the needs of TVS Motor Company, a top official said.
“We are setting up this plant closer to TVS Motor’s Mysuru plant by investing ₹40 crore to ₹50 crore, including land,” said Sriya Chari, executive director, Rajsriya Automotive.
“This plant will become operational either by June or July 2018.”
Last year, Rajsriya Automotive reported revenue of ₹780 crore with TVS Motor accounting for almost 90%. For TVS, it makes side panels, footboards, front panels, exhaust systems, centre stands, mufflers, steering column parts and mudguards.
“We are the leading original equipment manufacturer for TVS. We make everything for their scooters and bikes, apart from tyres, engines and wires. We also supply components to Wabco, Daimler, Continental, Yamaha, TI Cycles, Brakes India and Lucas TVS among others,” she said.
Right now, two-wheelers contribute 80% of Rajsriya’s revenue with the balance coming from four-wheelers, light and heavy commercial vehicles. Going forward, it would like to have a revenue mix of 60:40, said P.S. Govindachari, MD, Raysriya Automotive.
He said this would be achieved by expanding product portfolio either by going for joint ventures or acquisitions, scouting for partnerships that can provide technologies in the areas of future mobility and adding new clients.
The Chennai-based firm has three manufacturing facilities at Sriperumbudur, seven in Hosur and one in Himachal Pradesh. About ₹30 crore has been invested in Sriperumbudur and Himachal Pradesh to set up an integrated powder coating plant.
“Year-on-year, we have been growing at 8-10% per annum, while industry is growing at 6-8%. We are aiming to touch topline of ₹1,000 crore in five years. For this to happen, we have to look into electric vehicles space too,” she said.