Manufacture of Clips
In the year 2004-2005, the company went into the manufacture of mild steel clips used in spring assemblies as a separate product since the clips available in the market at that time were of inferior quality. Initially a test market was done to assess the future requirement and because of the response, it got for the product, a full fledged manufacture of clips was taken up with the existing facility available in the company. The turnover at the beginning which was at $ 6 Lakhs – $ 7 Lakhs per year has increased to $ 70 Lakhs approximately in the recently concluded financial year 2010-2011.
The future for this segment is quite encouraging that almost all the branches of the company are able to successfully market this product.
PRESENT & FUTURE
Having recorded a turnover of $ 40 crores during the financial year 2010-2011, the company has planned to maintain this growth. For this, the emphases is on meeting customer requirement in all segments of commercial and passenger vehicles especially in ultra light commercial vehicles and also multi axle vehicle where the market’s growth looks brighter. To achieve this, the company has gone in for modification in roll pass designs to roll ultra thin sections of 50 x 6, 50 x 10, 45 x 6, and 45 x 5. Test rolling of 50 x 6 and 50 x 10 were carried on 13.11.2010, whereas 45 x 6, and 45 x 5 were carried out on 14.03.2011. Regular production is being taken up every month as per the requirement of the market. This step of rolling these sections has made the company self sufficient to meet the market requirement of ultra light vehicles.
In the heat treatment section of the springs division conveyor hardening furnace is being modified to take up heat treatment of heavy spring leaves which are used in multi axle vehicles. With this modification, the company will be able to cater to this segment of the vehicles and at the same time, will be able to improve its production and productivity. In addition to this, a tempering furnace of higher capacity will be in place to improve the production by this year end.
The company had rewarded its shareholders with bonus shares of 1 for 2 in 1991 and again 1 for 1 in 1993 and also paid a dividend of 20% for the financial year 2010-2011 and again 10% interim dividend for the financial year 2011-2012.