CHENNAI: Trailer and truck body manufacturer Satrac Engineering has invested Rs 250 crore in its new manufacturing facility in Sriperumbudur, which was inaugurated on Wednesday, marking a milestone in its growth in the commercial vehicle body-building segment, an official said.
Satrac has earmarked Rs 70-80 crore that it intends to spend in the next 24 months, MC Bantwal, managing director, Satrac, told the media at the new plant.
The manufacturing unit, spread over 15 acres, with 3.5 acres of covered production space, has a production capacity of over 800 units per month at Sriperumbudur. This would be scaled to 1,000 in 24 months, he added.
The new factory has been set up to meet the rapidly growing demand for high-quality trailers, tippers and special purpose vehicles across the logistics, infrastructure, industrial and government sectors.
Satrac now operates two manufacturing facilities in Chennai and Bengaluru, with a combined production capacity of more than 1,500 units per month. A key highlight of the new facility is its advanced robotic welding systems, which enhance structural integrity, consistency and productivity, it said in a release.
Equipped with advanced infrastructure, modern automation systems and world-class manufacturing processes, the facility is described as the largest and most technologically advanced plant of its kind in South Asia.
The Chennai facility would strengthen its ability to serve India’s growing infrastructure and logistics sectors, while also reinforcing the export ambitions of its Japanese parent company, Kyokuto Kaihatsu Kogyo Co. The products manufactured will be supplied to auto majors such as Daimler India Commercial Vehicle, Tata Motors, Ashok Leyland, Eicher, Volvo and Scania.
Bantwal said, “With this facility, we have significantly raised the bar for trailer and truck body manufacturing in India.”
He also said the company plans to establish three more manufacturing facilities, with a new unit to be set up every 30 months.
The third unit is scheduled to be inaugurated in Jamshedpur, followed by facilities in Pune and Gujarat. A sum of Rs 900 crore has been earmarked for setting up these units.
Satrac reported Rs 550 crore revenue last fiscal as it looks at doubling it in two years, he said, dwelling on the role of the new flagship facility.
Apart from selling to original equipment manufacturers, Satrac also caters to logistics companies like TCI, Gati and VRL. While tipper and trailer sales account for 35 per cent each, the balance is from a mix of other products, including defence materials, he said.
Tipper load body price ranges between Rs 7 lakh and Rs 10 lakh, while the trailer costs over Rs 15 lakh, he said, adding load capacity ranges between 10 tonnes and 100 tonnes.
Bantwal also said it will commence export of its products to Australia soon.