Pricol - Denso Corp to increase stake

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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