Tata Group firm York Transport sees 30% spike in revenue
The market cap of TCS advanced by Rs 11,606 crore to Rs 2,28,632 crore last week, becoming the top gainer in the chart.
Trailer axles manufacturer York Transport Equipment India, a part of the Tata Group, is eyeing a 30 per cent revenue growth this fiscal on the back of growth in the industrial sector.
York Transport Equipment Asia became a part of the Tata Group after Tata Robins Frazer acquired a majority share holding in the company recently.
"The domestic industrial sector is on a growth trajectory. And without trucks and trailers it is not possible to think about industrial development and also the massive progress of the respective sectors. As axle manufacturers we see a huge growth potential and expect our revenues to grow by nearly 30 per cent every year," York Transport Chief Operating Officer G S Chatterjee told PTI over phone.
At present, the market size of is 28,000 trailers a year. "We enjoy nearly 26 per cent share in the axle market and with the kind of products we offer, the share will continue to grow in the coming years," Chatterjee said, adding the trailer segment is growing at around 40 per cent annually.
The Singapore-headquartered company, which has two manufacturing units in India - at Jamshedpur and Pune - has set up an R&D facility in Pune to serve the global demand, Chatterjee said.
"We have made an investment of about Rs 20 crore to set up a plant and Rs 3 crore for an R&D centre. We plan to shut operations at the Jamshedpur factory and shift the manufacturing to Pune. We want to consolidate our business as we want to focus on the Western region, especially Maharashtra and Gujarat where industrial development is rampant," he said.
Currently, the company manufactures 8,000 axles annually.
"We will continue to enhance the capacity to cater to the growing demand. We will make an additional Rs 10 crore investment next fiscal," he said.
Chatterjee further said the new R&D facility will focus on bringing in more technology-driven products to provide improved quality products at an affordable rate.
"The future market would be technology-driven, as the knowledge among the fleet owners is increasing and they are looking for better quality and low maintenance products. York is poised to offer many more innovative products to the trailer industry."
The Indian subsidiary of York contributes nearly 40 per cent of its global business. "We are in the process of expanding its presence here through channel partners in strategic locations like Gujarat, Rajasthan, Tamil Nadu and Punjab," he added.