Escorts Ltd. sets up Rs. 25 Crores facility in Uttaranchal for manufacture of Auto Components and Railway Equipment
New Delhi, 13th September 2006: Escorts Limited a leading manufacturer and supplier of Agri Machinery Products, Auto Suspension, Ancillary Products and Railway Equipment is setting up a manufacturing facility, with an investment of Rs.25 crores, at Integrated Industrial Estate, Pantnagar, Uttaranchal. It will manufacture auto components and railway equipment and add to its existing product portfolio.
The existing product offerings of the company in auto components include Shock Absorbers, Telescopic Front Forks and McPherson Struts. In railway equipment it is mainly into the manufacture of Shock Absorbers for Rolling Stock, Couplers for Sub-urban and Mainline EMU trains, Braking Systems and Composite Brake Blocks. These are currently being manufactured in the facilities of the company in Faridabad, Haryana.
Mr. Nikhil Nanda, Executive Director - Escorts Ltd., said, "Considering the ample scope for volume growth in both the sectors, we have been aiming to further leverage our manufacturing strengths. As part of our growth strategy, we would like to have a much greater contribution from these segments in our operations."
In the auto component sector the company has planned to significantly widen its product portfolio. It is also actively considering new partners and new export markets for auto components. In railway equipment, the company is foraying into the manufacture of a range of new products for emerging segments like Metros and New Technology Rolling Stocks. With a project cost of Rs.25 crore, at the new manufacturing facility in Pantnagar Escorts Limited will be availing several incentives like:
- Zero Excise duty instead of 16.32% for 10 years i.e. upto March 2017
- Central Sales Tax at 1% instead of 4%
- Income Tax holiday - 100% for 1st five years
- 30% for next five years
- Uninterrupted power supply and Power tariff of Rs.2.50 per unit