Nelcast bags Rs 40-cr order

Coimbatore: Nelcast Ltd has announced that it has received letter of intent worth Rs 40 crore from European manufacturer for supply of components for heavy commercial vehicles. This order is on long-term basis and the company needs to supply for next four years. Meanwhile, the company has completed its Phase I expansion plan at its new unit at Gudur. This will result in increase of installed capacity from 1,02,000 tonnes to 1,26,000 tonnes per annum. This expansion will help the compa ny to cater to the growing demand from its existing customers including Ashok Leyland, Tata Motors, Tata Cummins, and TAFE in the field of automotive and tractor segments. The company is in the process of moving up the value chain and plans to increase the share of high-margin machined castings in the total production to 20-25 per cent over the next two years from 10 per cent in FY07.