Ashok Kapur group chalks aggressive growth plans

In an initiative to broaden its client base, the Ashok Kapur controlled group of companies plans to enter into at least four new joint ventures by end 2008. The company has earmarked around Rs 250 crore towards these JVs which will manufacture a new range of automotive products that are not currently made by its group companies.

“We are likely to set up our new plants in the west and south India. We already own 10 acres of land in Chennai and 15 acres in Pune, which could host the first joint venture company. All four JVs will be implemented in the next 18 months,” Ashok Kapur told this publication. These initiatives signal a shift in strategy for the Rs 900 crore automotive group. It is now looking at OEMs other than Maruti Suzuki for future growth. In 1994, it had decided to align itself with growth plans of Maruti Udyog (MUL), and the strategy since then has been to support that company fully.

The automotive group is made up Krishna Maruti (automobile seats and door trims), SKH Metals (fuel tanks, front suspension and exhaust systems), Krishna Grupo Antolin (roof head liner), Krishna Toyo (mirrors), Kuma Stainless Tubes (aluminised and stainless steel tubes), Krishna Quinette Seats (entertainment seating), SKH Auto Components (seat trim division-polyurethane products division) and SKH Global Travels (travel management company).

While the automotive interiors business is handled by Ashok Kapur, his son Sunandan Kapur looks after the metal-based parts business. A major chunk of the group’s exports comes from this business. The group has two plants in Manesar for door trims and roof head liners. Two more plants are situated in Binola (15 miles from Manesar) for manufacturing mirrors.

A second plant in Gurgaon – the SKH plant no. 2 – handles exports exclusively. Besides tehse, the group also has two plants in Udyog Vihar, one of which – the SKH plant No. 1 – is situated within the MUL complex. The company also supplies seats for the new Rhino Rx being manufactured by International Cars and Motors, part of the Sonalika group.

As an entrepreneur Ashok Kapur has done it all. Before his entry into the automotive business, he ran the family jewellery business which has been in existence since 1889. He then went into home furnishing and carpets. Then, in 1985, he decided to get into automotive business through steering systems, axles, and propeller shafts. The company he founded was Sona Steering.

In 1993, the family business was segregated and streamlined with elder brother Surinder Kapur taking over Sona Steering. Ashok Kapur had to start afresh with Krishna Maruti in 1994. In 2005, the company bought out Mark Auto and renamed it Sat Krishan Hanuman (SKH) Metals.

P THARYAN