ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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A Piece of the Automobile Boom

A Piece of the Automobile Boom Hansavivek BHARAT GEARS proposes to participate in a new Rs nine crore joint sec- tor project being established in Moradabad district of UP for manufacture of 1,000 tonnes of automotive gears per annum. The project is intended to be financed by share capital of Rs three crore and term loans of Rs six crore (including foreign exchange loan of Rs 3.25 crore) from financial institutions. Pradeshiya Industrial and Investment Corporation of UP (PICUP) would contribute 26 per cent plus 10 equity shares and Bharat Gears 25 per cent minus 10 equity shares towards share capital of the new company known as 'Raunaq Automotive Components' and the balance 49 per cent will be raised through a public issue. Bharat Gears' investment in the new company's share capital will be around Rs 75 lakh. It is estimated that the project will commence production in mid-1986. Bharat Gears will provide knowhow support and engineering services to the company and will have sole selling and marketing rights for sale of products in India and abroad. The prospects for the project appear to be good, as the automobile industry is poised for growth with the setting up of new projects for manufacture of light commercial vehicles (LCVs) in the country and expansion of production capacity of existing heavy and medium commercial vehicle manufacturers.

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