AG Industries plans to double turnover to Rs. 2000 crore by FY '19

AG Industries, a leading manufacturer of plastic auto components and injection moulded parts to OEMs such as Hero MotoCorp, Mahindra & Mahindra (M&M), Escorts and many others, is betting big on the increasing role of plastics in automobiles and has chalked out aggressive growth plans in the near future.

With plans of growing at 20 percent during the ongoing financial year, this Rs 1000 crore company (2013-14 turnover) is aiming for a targeted turnover of Rs 1200 crore for FY2014-15 on the back of diversifying into the four-wheeler segment. It is to be noted that this company, which was established in 1993, has been primarily engaged in developing and supplying plastic parts to the two wheeler industry.

The company plans to achieve the turnover of Rs 1,500 crore and Rs 2,000 crore by FY2016-17 and FY 2018-19 respectively, as it plans to have a mixed portfolio of clients across segments. With 60 percent of revenues coming from the two wheeler segment, AG Industries plans to draw 30 percent of its business from the four wheeler segment and remaining 10 percent from specialised parts by FY2018-19.

With firm plans of boosting the three aspects – manufacturing at multi locations, product diversification and tool design capabilities, AG Industries has recently started the operations at its sixth unit at Bawal (Haryana) for tool design and fabrication processes. The company has five other plants (two in Bawal, and one each at Gurgaon, Manesar and Haridwar).

Talking exclusively to Autocar Professional, Sanjay Malik, assistant vice president – business development & engineering, AG Industries said, “We plan to venture into the western and southern regions to propel our near and mid-term growth plans. We plan to set up a production plant near Pune by end 2015 to cater to the OEMs based in this location. We plan to attract business from Tata Motors, M&M, Volkswagen and General Motors India from our planned plant around Pune.”

The company has installed more than 165 injection moulding machines ranging from 50 tons to 1300 tons across its manufacturing units, and the combined production capacity of its manufacturing units is over 36,000 tons of engineered plastics per annum. 

Seen in the photograph on top: Sanjay Malik, assistant vice president - business development & engineering, AG Industries