AVR Valves to set up new plant

RAJKOT-BASED AVR Valves, which manufactures engine valves under the Vikram brand, is setting up a Rs 20 crore plant to double capacity. Land has been acquired at Lodhika Industrial Estate nearby and production will begin soon. At present, the company makes two million valves annually of which half the output goes to the four-wheeler segment and the balance to two-wheeler and marine industrial applications.

The new facility will, however, focus on four-wheelers and the existing one on two-wheelers. It will have state-of-the-art automated lines. Clients in the local market include Eicher, Greaves and Lombardini. “Smaller units must expand to become relevant in the new global arena which calls for quality products and high capacities,” said chairman of AVR Valves RK Jain.

The company has received some export orders. It is in talks with some aftermarket players and Tier-1 companies in the US and also with Harley Davidson. Share of exports in turnover (Rs 10 crore) was 75 percent last year and came largely from the US and UK. This is likely to cross 90 percent in the coming years.

According to Jain, AVR Valves is open to the idea of a public issue to fund future capacity expansion. It is in the process of developing sodium-filled valves that help keep the engine cool. Production of titanium valves could also begin soon.

LESSONS FROM CHINA

In an interesting initiative, the company took some of its engineers to have a look at Chinese auto manufacturing companies. The idea was to expose them to the high levels of efficiency and productivity prevalent in the country. “The Chinese are also relatively consistent in producing quality goods when compared to their Indian counterparts,” Jain said.

The chairman is giving top priority to technology. A dedicated team of engineers and technocrats ensure delivery of the right products and monitor quality at every critical stage of manufacturing.