Shimoga-based grey iron and alloy cast iron manufacturer, Vijay Technocrats, is planning to treble its capacity to cater to the increasing requirements of its existing and new customers. The present capacity is 2,200 ton per year.
The capacity expansion has been necessitated by the company’s decision to get into the manufacture of castings using spheroidal graphite iron. It has received enquiries from Bharat Earth Movers (BEML), Kolar Gold fields and Cummins India.
The expansion will take place in the existing facility and the total investment is expected to be Rs four crore. The company plans to optimise floor space by adopting lean manufacturing techniques. It will then outsource secondary operations like fettling.
The project is expected to become operational by middle of next fiscal, said director (technical), S Rudregowda. The company is also setting up a spectra lab, the services of which are currently outsourced. The company plans to go in for continuous mixture plant during 2007-08.
Founded in 1999, Vijay Technocrats has been manufacturing castings grey iron and alloy cast iron under a technical collaboration with Weir Minerals of Australia. It makes components ranging from one kg to 900 kg for a single piece. The company also manufactures components for diesel engines and compressors.
The technology agreement includes a buy back arrangement, and the company has been supplying slurry pump parts to its Australian collaborator. Its Indian customers include Automotive Axles, Cummins India, Makino, Askar Microns, Atlas Capco and Fisher Sanmar.
The present share of direct exports to turnover is 10 percent. However, over 70 percent of the components it supplies to its Indian customers is exported. Turnover was Rs 12.3 crore during 2005-06 and this is projected to go up to Rs 16 crore this fiscal.