Dhoot Trans­mis­sion, US firm in JV

Financial Chronicle - - COMPANIES, MONEY & MARKETS - MICHAEL GONSALVES michael­go­n­salves@my­dig­i­talfc.com

DHOOT Trans­mis­sion, the auto com­po­nents man­u­fac­turer, has for­ayed into the elec­tro-me­chan­i­cal and elec­tronic switches for the two and three-wheeler in­dus­try through an equal JV with the US-based a Car­ling Tech­nolo­gies, with an ini­tial in­vest­ment of Rs 65 crore for a 1-mil­lion unit fac­tory.

The Au­rangabad-based firm, which is also in the fi­nal stage of ac­quir­ing a wiring har­ness­ing firm in Europe this fis­cal with ticket size of Rs 100 crore, is also ey­ing to in­crease its over­seas sales to 25 per cent from the present 18 per cent.

“We are tar­get­ing our sales rev­enue to grow to Rs 650 crore this fis­cal and touch Rs 900 crore next fis­cal on the back of the in­cre­men­tal rev­enue from the JV,” Rahul Dhoot, MD, Dhoot Trans­mis­sion told Fi­nan­cial Chronicle.

The joint ven­ture will cater to the fast grow­ing twowheeler and three-wheeler mar­ket, as well as com­mer­cial ve­hi­cles, agri­cul­tural and con­struc­tion equip­ment seg­ments. It will also be ex­ported over­seas through Car­ling’s global dis­tri­bu­tion net­work, the com­pa­nies said in a state­ment.

The JV part­ners said the green­field fa­cil­ity com­ing up on an 8-acre plot in Au­rangabad in Ma­ha­rash­tra will be op­er­a­tional in the first half of 2018 and will em­ploy around 300 peo­ple in the first phase. “The staffing will touch 1,000 over the next three years as it sees a mas­sive growth in de­mand for its prod­ucts with the in­tro­duc­tion of BS-VI emis­sion norms by 2020,” Dhoot said. Though the JV part­ners re­fused to share fi­nan­cial de­tails, in­dus­try sources said in the first phase the part­ners will in­vest Rs 65 crore which will go up over the next three years to Rs 100150 crore.

Dhoot is amongst the top four in the over Rs 6,500 crore do­mes­tic wire har­ness­ing seg­ment with over 30 per cent mar­ket share in the two-wheeler in­dus­try and a size­able pie of the com­mer­cial ve­hi­cle in­dus­try. The Con­necti­cut-based Car­ling is a global leader in cir­cuit break­ers, switches, power dis­tri­bu­tion units, dig­i­tal switch­ing sys­tems and elec­tronic con­trol switches.

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