With fairly good performance likely in both the domestic and export markets, Rico Auto should be able to grow revenue by 15-20 percent this financial year, says Chairman, CEO & MD Arvind Kapur.
The funding for the Rajasthan plant will mainly be through internal accruals and if there is shortfall only then will Rico Auto approach banks, said CMD Arvind Kapur.
CNBC-TV18 learns that leading suppliers like Rico Auto and Shriram Pistons have been slapped with an 18 percent penal rate of interest over retrospective price increase in their contracts.
In an interview with CNBC-TV18, Arvind Kapur, chairman and MD, Rico Auto, talked about the business and the outlook going forward.
The company expects over 10 percent growth in FY15. According to CMD Arvind Kapur, the auto industry will have a double digit growth this year though the car segment may grow only on the higher side of single digit.
The company expects exports to contribute around 23-24 percent to revenue this year from 20 percent in the previous year.
Though chairman RC Bhargava today said that Maruti could look at resuming partial production within this month it could still be a huge challenge to clear the backlog of orders.
Indian auto component industry is expecting a slowdown in growth to 12-15% in 2011-12 from over 34% in the previous fiscal, Automotive Component Manufacturers Association of India said today.
Arvind Kapur, managing director, Rico Auto Industries talks to CNBC-TV18 about the latest happenings in his company and the auto ancillary sector.
Arvind Kapur, managing director of Rico Auto said the company is on course to cross the Rs 1000 crore-mark this year. "We are targeting a bottom-line of about 4-5% in coming quarters," he informed.