Pricol, a leading manufacturer of vehicle dashboards, has announced its plans to invest between Rs 2-2.2 billion in capital expenditure for the fiscal year 2025. The investment is aimed at extending the company’s production capacities across different product lines and verticals.
Increasing Capacity Utilization and Enhancing Capex: During the Q4FY24 earnings call, Vikram Mohan, Managing Director of Pricol, shared insights into the company’s performance. He stated that their capacity utilization was currently at nearly 85 percent, indicating the need for expansion. As a result, Pricol is in the process of enhancing capacity and carrying out capital expenditure at its new plants in Pune. Additionally, the company is upgrading facilities in Coimbatore and Manesar.
Focused Capex for Organic Growth in FY23-25: In line with their growth plans, Pricol had previously announced a total capital expenditure of Rs 6 billion over the course of three years from FY23-25. The planned investment for FY25 will primarily concentrate on expanding capacities in product verticals such as digital instrument clusters and PCB manufacturing.
Strong Market Share and Order Wins: Pricol has witnessed an improvement in its market share in the instrument clusters segment. This growth has been fueled by strong order wins, including a significant order from Honda Motorcycle & Scooters India, the country’s second-largest two-wheeler manufacturer.
Growth Opportunities in the Electric Vehicle (EV) Business: Despite being in the early stages of the EV business, Pricol sees significant growth opportunities in this sector. The company has collaborated with 18 EV Original Equipment Manufacturers (OEMs) for instrument clusters, with the aim of increasing its market share from 6.8 percent to 10 percent in the passenger vehicle segment.
Expansion of Disc Brake Capacity: Pricol currently has a setup capacity of Rs 1.2 billion per annum in the disc brake business and has secured orders from six companies. To meet the increasing demand, the company is in the process of ramping up its disc brake capacity through the construction of two new units. Once completed, Pricol’s disc brake capacity will reach Rs 3 billion per annum.
Conclusion Pricol’s announcement of a significant investment in expanding production capacities showcases their commitment to meeting the rising demand in the automotive industry. With a focus on product diversification and growth in the EV sector, the company is well-positioned to leverage market opportunities and strengthen its position in the global automotive market.
