Nelcast casts expansion plans
07 Feb 2007
Chennai: With buoyant demand from the domestic and overseas automobile companies the Rs270-crore castings company Nelcast Ltd has decided to expand its capacity by 48,000 tonne per annum (tpa) to 1.5-lakh tpa at an outlay of Rs61 crore.
Only recently the company had increased its capacity by 30,000 tpa.
The company makes grey and ductile iron castings ranging from 0.5kg to 250kg. The castings find use in engine, transmission, suspension, axle, brakes and steering.
According to deputy chairman, P R K Reddy, the company will also set up a modern machine shop facilitating exports.
The company is planning to tap the market for funds. Recently it raised Rs3.10 crore through a preferential issue to a Hyderabad company Menakuru Infrastructure Pvt Ltd at Rs155 per share. After this equity of the company stands at Rs13.05 crore.
