30% spike in revenue seen by Tata Group firm York Transport

MUMBAI: 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 said.

Currently, the size of the market 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.

At present 8,000 axles the company manufactures 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.Automobile News