Rico Auto Industries is expecting a Rs 1,500 crore revenue in FY18-19. It has already bagged an order for EV worth 1,200 crore from electric vehicle manufacturers.
Gurugram based auto parts manufacturer Rico Auto Industries is adopting a three-way future growth strategy to achieve a Rs 2,000 crore turnover by 2020. It is expecting a revenue of Rs 1,500 crore in FY18-19. It is set to invest over Rs 400 crore in the next three years to reach this target.
“We launched products in two-wheeler aftermarket last year and received a good response so we are launching products in four-wheeler segment. We expect to get rs 100 crore from this segment,” told Arvind Kapur, chairman, Rico Auto Industries to ETAuto.
Moreover, it is planning to enter into defence in a big way. It is also aiming to build up its export business and earn a revenue share of 40 per cent to the total revenue in the next two years.
“We have a very good order, last year we bagged Rs 2,600 crore order while in the first half of this financial year we have already got a order of Rs 2,100 crore. Some of these orders will start this year while some will begin next year,” Kapur said.
As per Kapur, all these new orders will annually contribute to the total turnover initially with Rs 800 crore and it will further increase during the peak year. About electric vehicle component supply, Kapur told that the company has already started development of the prototypes and it will supply housings to the EV makers.
“Currently, the supply to EV makers will take about 10 years but this is conservative approach. We expect to get additional orders in the due course,” Arvind said. It is focusing on ICE and EVs both and he expects that only 25 per cent of vehicles can become EV by 2030 globally and it may reach to 40 per cent by 2040.
As ETAuto reported, the company is expected to sign a joint venture with a Taiwan-based leading CVT manufacturer HZ Manufacturing but Kapur declined to comment on it, “We are looking at all the opportunities and we don’t comment of market speculation,” he said.
Further, the company will hold 51 per cent stake while HZ will hold 49 per cent stake in the new joint venture. The joint venture may be announced next month.
