Rane sets up Rs. 355-mn plant

Trichy: Rane Engine Valves, part of the Chennai-based Rs 1,400-crore auto component major Rane Group, has set up a valves manufacturing unit near Trichy in Tamil Nadu at an investment of Rs 35.5 crore. This will be the fifth manufacturing facility of REVL.

The new facility will have a capacity to produce six million valves in the initial phase, which would be scaled up to 25 million in 2-3 years through further investments, said L Ganesh, chairman of Rane group.

The new plant will initially employ 45 people and cater to the needs of Volkswagen of Germany and Skoda of Checkoslovokia. In future valve ranges meant for Deutz would also be in the production line.

The revenues from the new plant are expected at about Rs 20 crore by the first full year of operation (2008-09).

Alexander M Seitz, executive director (corporate), Volkswagen, said the company saw opportunities to scale up the value of engine valves sourcing from REVL to euros 36 million from the present euros 12 million.

REVL, which posted revenues of Rs 183 crore for 2006-07, expects to end this fiscal with 15 per cent growth in topline. Exports account for 33 per cent of its revenue and the company expects to scale this up to 40 per cent over the next five years.

The company caters to all segments of auto industry such as, passenger cars, multi-utility vehicles, light commercial vehicles, medium and heavy commercial vehicles, farm tractors, three-wheelers, two-wheelers and stationary engines.