Pricol Limited, a leading manufacturer of automotive components, will invest around Rs 500 crore to support company's consolidated revenue target of Rs 3,000 crore by 2020.
After unveiling company's new brand identity, Vikram Mohan, Managing Director, Pricol Limited said that this new identity reflects its core values and strategic focus in its businesses in India and abroad.
Mohan said that Pricol is a market leader globally in several segments, but not many knew about it.
For instance, the company is the world's second-largest manufacturer of Driver Information Systems (DIS) for the two-wheeler segment, India's largest manufacturer of automotive pumps for the two-wheeler segment, the world's fourth-largest manufacturer of Instrument clusters for tractors and off-highway vehicles, India's largest manufacturer of telematics solutions for tractors and off-highway vehicles.
The company will focus on entering newer markets through acquisitions, tapping new product segments.
Pricol would invest around Rs 500 crore in acquisitions, mainly in Germany and US, and plans to set up faculties in Vietnam and Mexico till 2020.
Mohan said the target companies' revenues could be between Rs 250 crore and Rs 400 crore. The acquisitions would be made to enhance customer access, market access and even to have access to technology. Recently, Pricol acquired Melling do Brasil, an automotive powertrain manufacturing company in Brazil (renamed later to Pricol do Brasil). The company serves domestic and international customers such as Volkswagen, FIAT, General Motors, Harley Davidson, and Mack Trucks.
The debt-free company will fund the investment through internal accruals and debt, said Mohan.
He added, of Pricol's total turnover (consolidated annual revenue for 2014-15 was Rs 1,150 crore), export contributes around Rs 300 crore. By 2020 the company expects around 40 per cent of the revenue will come from exports.
Pricol currently has eight manufacturing units and seven business offices across the globe, including India, Indonesia, the US, Brazil, Germany, Singapore and Japan.