Nelcast Ltd Press Release

• NELCAST records sales revenue of Rs 403.65 Cr
• Capacity Expansion at a cost of Rs 60 Cr.,
• Production capacity to reach 150,000 MT per annum by Oct ’08.
• Exports set to increase by 100% in 2008 – 09

NELCAST Limited the country’s largest producer of Ductile Iron castings has just announced completion of its Phase I expansion plans. Incorporated in 1982, its first factory was commissioned in 1985 at Gudur, Andhra Pradesh to produce 1,200 MT of Ductile iron castings per annum. Over the next decade, the Gudur facility grown to 24,000 MT per annum. In 1996 NELCAST extended its operations to Ponneri, Tamil Nadu, and installed an additional capacity of 12,000 MT per annum. By 2005, it had reached a capacity of 60,000 MT per annum. Today it manufactures around 200 different castings in SG and Grey Iron both large and small, from Cylinder Blocks to Flywheels, Housings to Exhaust Manifolds, Transmission Cases to Spring Shackles.  Most of these castings are for Commercial vehicles and Tractors.

In order to meet with the rising demand of its products both in the domestic and export markets, NELCAST initiated in 2006, plans to further enhance its production capacity. Phase I of the plan, was completed in September ’07, with an investment of Rs 30 Cr increasing the installed annual capacity from 102,000 MT to 126,000 MT. As Phase II, the company is investing another Rs 30 Cr., to further enhance its installed capacity to 150,000 MT per annum by last quarter of 2008.

Having started as an ancillary to Ashok Leyland, NELCAST has over the last 2 decades, broadened its operations and widened its product range, to become a key supplier to the Commercial Vehicle and Tractor Industries. It also manufactures large quantities of Inserts and Ribbed Plates for Railways. The present clientele include TATA Motors, Ashok Leyland, Mahindra & Mahindra, TAFE, Eicher Motors, Eicher Tractors and International Tractors in the domestic market and Arvin Meritor, Dobbi Dicco and Wartsila in the international market.
 
On the export front, Nelcast has been making rapid strides and the sales of Rs.52 crores reached in 2007-08 is set to cross Rs.100 crores in 2008-09.  As a policy, Nelcast plans to increase exports to one fifth of its turn over. 

Simultaneously, Nelcast has been engaged in moving its products up the value chain by machining its castings.  It expects to machine 20% of its casting out put in 2009 and raise its machining capacity each year to reach a level of 30% by 2010.

Nelcast has always seeking recognition for its quality standards.  It has thus acquired a ISO 9001 and QS 9000 years ago.  Ever since 2005, NELCAST has been a TS 16949 company.

The current fiscal year NELCAST recorded sales of Rs 403.65 Cr., as against Rs 350.10 Cr., in the year 2006 – 07. The net profits increased 32% to reach Rs 26.02 Cr., as against Rs 19.77 Cr., in 2006 -07.  With its aggressive growth plan and enhanced production capacity NELCAST has targeted a turnover of over Rs 600 Cr., and production of over 100,000 MT in 2008-09.