Setco plans clutch assembly facility in Africa

Setco Automotive, the largest manufacturer of Lipe clutches for medium and heavy commercial vehicles in India, has lined up a Rs150 crore capital expenditure plan for the next four years.

The company also is looking at entering new segments along with expanding in newer geographies and setting up an assembly line for clutches in Africa in order to meet the growing demand.

“Currently there are no clutch manufacturers between Egypt and African region, hence we see a big opportunity. We are talking to a few local companies in order to form a partnership there,” said Harish Sheth, chairman and managing director, Setco Automotive.
Sheth said the company would require an additional investment apart from the planned capex for setting up the assembly unit in Africa.

Around 7% of company’s revenue comes from exports while it is looking at taking that figure to around 15% by 2015.

As part of its capex plan, the company is planning to set up one more assembly unit in the northern India. It is currently in the process of finalising the location.  “The location could be either Jamshedpur or Lucknow,” said Sheth. The ¤150 crore capex would be made for ramping up the R&D centre, modernisation of the plants and increasing the capacity, Setco said.