The Board of Directors of Enkei Wheels (India) Limited (Company) in their meeting held on 27th November 2019 has approved the updated expansion plan of the Company at its land beside existing plant at Shikrapur, Pune by setting up new paint facility & Production Lines.
In FY17-18, the Board of Directors in their meeting held on 3rd August, 2017 approved expansion plan in the land adjacent to existing factory at Shikrapur. The expansion envisaged 2 new MAT Lines (passenger cars wheels) & advanced paint shop with a completion target by December, 2019.
The said expansion plan is delayed due to delay in receipt of certain Government approvals likes Consent to Establishment from MPCB and Building Plan approval from PMRDA and also administrative delay in finalization of contracts for building construction. Similarly, Company is progressing slowly on expansion as auto industry is witnessing slow down since Oct-2018 and the same trend will remain few more months.
Company has planned fully automatic painting facility instead of earlier plan of semiautomatic.
The plan has been revised. Expansion of building and inclusion of machine shop is added due to change in project requirements. ETP plant and Additional electricity load was not considered in initial proposed plan which is now considered in revised plan.
Further, Company has installed Most Advanced Concept (MAC) Technology looking at the future requirement of Indian automobile industry, wheel design and size trends.
Accordingly, considering the technical feasibility of the building layout for (MAC) Most Advanced Concept technology for production and fully automatic painting facility, the cost of construction and Machinery and equipment cost is increased compared to the initial plan.
Presently, Company is expecting entire project to be completed in Nov-2020 however One MAC line will be operational till the end of year 2021.
Shares of ENKEI WHEELS (INDIA) LTD. was last trading in BSE at Rs.302.6 as compared to the previous close of Rs. 316.55. The total number of shares traded during the day was 686 in over 20 trades.
The stock hit an intraday high of Rs. 324 and intraday low of 302.6. The net turnover during the day was Rs. 210947.