The Gujarat-based Steelcast, a castings manufacturer, has entered into an agreement with global major Caterpillar Inc. Under the agreement, Steelcast will set up a dedicated manufacturing facility to make castings conforming to Caterpillar's specifications.
Caterpillar will give an interest free loan of $5 million (Rs 25 crore) to Steelcast. The loan is to be repaid over four years.
Caterpillar is a global leader in the manufacture of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. Revenues for 2011 total $60 billion.
Mr Chetan Tamboli, Chairman, Steelcast, said, “Through this agreement, we expect sales to Caterpillar to grow multi-fold from around Rs 40 crore in 2010-11 to about Rs 150 crore in 2015.”
Mr Tamboli said that in February a team from the American Association of Rail Road, audited the company's manufacturing facility at Bhavnagar, Gujarat. The team is expected to certify the production facility to enable Steelcast to export castings to the US Railways from June.
Steelcast expects to clock revenues of over Rs 225 crore in 2011-12, with about exports mainly to Germany and the US accounting for about 45 per cent.