Firstly, the company plans to invest Rs 300 million in the next one year to increase its drill manufacturing capacity in the cutting tools segment.

Automotive components company Birla Precision Technologies Ltd is increasing its production capacity to capitalize on new opportunities in India as the global supply chain changes during the epidemic and as companies look for regions to source from outside China, senior executives said. To begin with, the company plans to invest up to Rs 300 crore in the coming year to enhance its drill manufacturing capacity in the cutting tools segment. To begin with, the company plans to invest up to Rs 300 crore in the coming year to enhance its drill manufacturing capacity in the cutting tools segment.

Vedant “India will play a key role in the global automotive supply chain. Over time, there is a growing desire to shift the supply chain to India to immediately eliminate the impact of the COVID-19 pandemic.” Birla Precision Technologies Birla said.

Anti-Chinese sentiment, the worst health crisis and US-China trade tensions have led to changes in the global supply chain.

“In our cutting tools range, we are expanding our range of drills. At the moment, we import a lot of drills from China, so we’re very aggressively expanding because it’s going to replace mass production in China without a flood. Cheap drill bits are coming in. But the quality is not up to standard.

“We were getting about 12,555 months 10,000 drills a month. Now we plan to go to 6,000 drills. Add another 300 10,000 (per month) in the month. Initially, we invested nine Thousand crore rupees,” Birla said.

He added, “We are looking at ways to further expand our capacity in the future.”

“Then, we are considering further expansion of our production capacity. As a result, we plan to further expand our production capacity in 2022. year4 with a further investment of Rs. 2.5 crores a month ago). Working capital and capex, we are facing the most aggressive demand,” he added.

On the current market scenario, he said, “Birla Precision is, in fact, above its pre-New Crown epidemic level. We expect our share price to go up by about 10% in the last 2-3-3 between one month. We expect it to be very bullish.” All of our customers have expressed similar opinions, so it looks positive.

However, he added that the automotive industry is currently facing supply issues due to factors such as semiconductor shortages.

Prior to the outbreak, the automotive industry experienced its worst recession in 20 years since we started monitoring the data, and this is entirely a demand issue.

“Now it’s the opposite,” Birla said. As for the company’s earnings outlook, he said : “The auto industry went through some recession last year (fiscal year), so profits were a little low. Last year’s sales were around 2.3-24 billion won. Since then, our budget has been reduced to less than Rs 2 billion. I think it is better to shut it down now. The monthly trend is at the level it was before the new crown outbreak. As a result, revenues for the next financial year should be much higher than the Rs 2.4 billion realized in 2018-19.