COIMBATORE:
Japan's Denso Corporation, a technical and equity partner of the
Coimbatore-based Premier Instruments & Controls (Pricol) is likely
to increase its equity stake in the latter to 26 per cent by the
calendar year-end.Currently, Denso holds 12.5 per cent stake ( picked up
in April 1997) in Pricol, a leading manufacturer of dashboard
instruments and accessories. Both partners had entered into an agreement
enabling Denso to increase the stake up to 26 per cent at a later date.
"Both
the companies are expected to take a decision on the stake hike
sometime in December, 2002. And the increase in equity will be in the
form of equity expansion," Pricol officials told ET. Being a leading
player in the automotive instruments, parts and components, Denso's
increased stake will help Pricol in the long run, they added. Pricol
achieved a turnover of Rs 252.56 crore and a net profit of Rs 9.05 crore
for the year 2001-02. The company's paid-up equity base is Rs Six
crore.n another interesting development, two Indian companies, which
intend to assemble and sell Chinese motorcycles, are in talks with
Pricol for sourcing instruments and accessories. "The two companies,
Monto Motors in Rajasthan and Asta Motorcycles & Scooters India may
also look at sourcing disc brakes from us. But, they have not disclosed
the numbers," Mr Trevor Mendoza, senior manager, Business Development,
Pricol said.
Pricol
has recently established a state-of-art facility for manufacturing disc
brake sets with a capacity to roll out 25,000 sets per month. While the
production was started last year, the company has supplying to Royal
Enfield. It has also supplied a "pilot load" to Bajaj Auto and Kinetic
Engineering, besides samples to TVS Motor, Yamaha and Hero Honda.
Apart
from Pricol, Brakes India and Kalyani Brakes make disc brakes in the
country. "We are the only supplier to develop stainless steel disc
indigenously and successfully," he claimed. According to him, Pricol's
present focus is on quality and productivity improvement and to meet
global standards. It has been rigorously implementing TPM and TQM
processes and also working on a strategic plan for the next four years
to achieve Pricol also wants to continue the thrust on exports and it is
one of the major oil pump suppliers to Piaggio among others.
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