NEW DELHI: Engineering Industries Ltd (NEIL), an auto component maker under the CK Birla Nationall group, will invest Rs 10 crore over the next three years to manufacture needle roller bearings at its Jaipur plant, a senior company official said. The company, which has entered the needle bearing segment using NTN licensed technology, expects to have a vertical revenue of around Rs 500 crore next year, which will later be expanded to Rs 1 crore.

“Now we are entering the needle roller bearing segment with a complete product portfolio, which is the only missing piece in the automotive segment. We will invest Rs 100 crore over the next three years.” said Rohit Saboo, CEO, National Engineering Industries Limited (NEIL).

He said that the investment in needle roller division will be a part of the company’s overall capital expenditure program of Rs 33 crore being undertaken over three years.

When asked about his expectations from the new segment, Saboo said, “It will be small this year as it will require multiple tests and trials. From next year, we are targeting 5 later to increase to Rs. 1000 crore Rs. One crore.

He added that the company is in the process of building the capacity of a new plant on top of the existing one in Jaipur.

Needle roller bearings are smaller than normal bearings and have high load carrying capacity. This enables a compact design and allows these products to be used in applications that require less inertia forces, such as engine crankshafts.

Commenting on the overall market situation, he said, “In the new financial year, one expects a rise in the second half of the year, especially around the Lantern Festival.”

Overall, he said, “We are optimistic that this trend will soon reverse and demand will rise again, perhaps later this year or early next year.”

On the company’s total revenues, Saboo “We expect revenues to reach Rs 205 crore to Rs 21 crore for the current financial year. We expect to grow at about 7% next year. We expect 5% of that. it will grow from the automobile segment in the future.

The remaining 2%, he said, will be raised by “increasing the share of wallet in the industrial sector”.

He also said that NEIL Kia and MG will be hired to supply their products to new entrants such as automobiles.

Sabu added, “We are discussing or planning to discuss with all of them and hope to work with them on bearings later this year.”

When asked if the company would export needle roller bearings, he said, “We will definitely consider it as most of our export customers are in the automobile industry.”