GS Auto seeks Rs. 50-cr funding to bolster expansion plans.

GS Auto International Ltd., an automotive component maker, is seeking private-equity funding of more than Rs. 50 crore to carry out a part of its expansion plans.

According to market sources, the company is in talks with a Norwegian fund, for an investment of around Rs. 60 crore, and the investment deal is likely to be signed in January.

GS Auto's Managing Director, Surinder Singh Ryait, confirmed that the company was in negotiations with a European private equity firm for investment. 'We aim to bring in private investments of over Rs. 50 crore by the end of this financial year,' he added.

The Rs. 130-crore company has manufacturing units at Ludhiana and Jamshedpur for forged, machined and cast components, such as suspensions and axles, of commercial vehicles. The MD said the company is planning to produce automotive safety gadgets (air bags).

'We are looking at the possibility of setting up such manufacturing facility in the next one year at our Adityapur unit, near Jamshedpur. We also have a long-term plan for making (unpowered) trailer units. We intend to set up such manufacturing capacity at Ludhiana in the next five years,'he added.


HBL