Rajkot-based three-wheel manufacturer Atul Auto is in process of acquiring land to build a greenfield facility near Ahmedabad.
The company has informed the Bombay Stock Exchange in a filing that it is ‘looking at the upward movement of business growth and exploring various options for capacity expansion’. As part of expansion strategy, it has identified approximately 70 acres of agriculture land near Bavla, of which it has acquired 35 acres.
Atul Auto has a facility at Shapar, 18 km away from Rajkot with an annual production capacity of 48,000 units that can be increased to 60,000 units depending on demand. The plant is equipped with advanced equipment and machinery that includes a CNC machine shop, fabrication shop and paint shop.
Autocar Professional reported in June 1, 2014 issue the company’s plans for a new plant and to target annual production capacity of 30,000 units in first phase, and subsequently doubling it.
The company also said that it plans to commence operations in next 18-24 months once the land required is fully acquired.
For Atul Auto, Gujarat and Rajasthan are its largest markets. However, it plans to foray into other rural markets including Tamil Nadu and West Bengal.
The company has sold 11,578 units in the four-month period ended July 2014 as against 10,392 units in the year-earlier period. Its marketshare, as per SIAM, is 6.70 percent.
The Atul Auto range includes brands such as Shakti, Gem, Smart, and Gemini.