India Brass components an ISO 9001:2000 certified company based in Gujarat India plans to diversify in to drop forged tools. A brand new plant at Metoda is beings et up with 12 drop forging hammers and allied machinery at the cost of US$ 11 mn.
4 Drop forging hammers are being imported from Vitarelli Spa Italy and rest of the machinery will be sourced locally. The company will produce drop forged hand tools, automotive crankshafts and light/medium engineering products. The new plant will employ 145 people and will come on stream in about 16 months from now. The company has tied up with a local Gujarat bank for term.
India Brass components also plans to invest in Steel re-rolling mills in Punjab which would help it achieve backward integration and a better control over prices and quality fo steel that it would use.
The machinery used will allow BC to make parts in tolerance of few microns and this will help it to secure large orders form automotive sector abroad. Rajkot is fast emerging as a world center for auto parts forgings and hand tools with this years exports at appx US$ 1 Billion from Rajkot alone.
The products will be marketed in Europe and USA as the forging shops there are slowly closing down and there is good demand for Indian forged steel and Brass parts. The company presently enjoys sales of 17 mn $ in exports with export of Brass anchors (http://www.india-brass-components.com/brass_anchors.htm) and Brass fasteners ( http://www.india-brass-components.com/products.htm ) to UK Italy and Spain. IBC already has a dealer network of 23 in Europe which could be tapped for distributing drop forged hand tools and automotive forgings as well.
Mr. Vikram Shah of the company also informed that company might plan an IPO once the stock market situation improves however looking at shaky primary market scenario the plans are not concrete.
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