Machine tool major, Jyoti CNC Automation Private Limited, has chalked out a capital expenditure of Rs 300 crore over the next two years to expand it's production capacity and product range. The company signed an MoU with the Government of Gujarat in this regard during the recently concluded fifth biennial Vibrant Gujarat conference.

"This year we are looking at organic growth," said Parakram Jadeja, Chairman & Managing Director, Jyoti CNC Automation Private Limited. However, the company is also eyeing acquisitions in the future, most probably in Germany.

Jyoti CNC's standalone turnover in the financial year ending March 31, 2011 will be touching Rs 350 crores, a 94 percent jump over the Rs 180 crore turnover it registered in 2009 - 10. The company is targeting a turnover of Rs. 600 crore in fiscal 2011 - 12.

15 percent of the company's turnover is from exports. With exports crossing Rs. 50 crore this year, Jyoti is one of the largest exporters of machine tools from India. "Next year we are looking at doubling exports," said Jadeja. The company intends to maintain the same ratio (15%) for exports, next year as well.

Jyoti currently employs around 900 people in India. "In the coming one year we will employ another 300 people," said Parakram Jadeja. "By 2012, when the capacity will be ready, around 1500 people will be employed," he added. Currently the company has around 68 people working in research and development. This will be nearly doubled to 120 people by 2012.

As a part of it's skill development initiatives, Jyoti will work with training institutes like ITIs. The company is also looking at taking over an ITI in Gujarat.

"The capacity now is for 2500 machines. This year we are fine tuning to achieve 3000 numbers," said Jadeja. By 2015-16 the company is targeting a capacity of 8000 machines.

Currently Jyoti caters to 4 different lines of machines - the entry level 2 & 3 axes and turn mill centers ; Solution line with automation (loading, unloading, tooled-up solution etc) ; Die & Mould ; technology driven machines (5 axes turning, milling mill-turn centers and multi-tasking machines).

The company is increasing it's focus on technology driven multi-tasking machines.

Foundry & Machining facility

By next year it's machining facility and foundry will undergo expansion. The capacity of the foundry will be increased from 1000 TPM to 3000 TPM. The facility will be ready by 2012. With nearly 75 acres of land available, the company will not require additional land until 2020.

Ball-screw manufacturing

Jyoti currently imports ball screws from Italy. The company is considering a ball-screw manufacturing facility, due to the shortages and delays being faced. However the plans for such a ball-screw manufacturing facility are yet to be firmed up.

Jyoti makes spindles (below 18000 rpm) in-house for it's own machines. The high-speed spindles are imported by the company.

Technical centers

As a part of it's expansion plan, the company plans to set up technical centers in India and abroad. Jyoti plans to set up a technical center in Chicago this year. It already has a technical center in Stuttgart, Germany, which was set up 2 years back. It is expected to complete work on a technical center in Pune sometime this year. Jyoti already has technical centers in Chennai and Rajkot.

Huron Graffenstaden

In 2007, Jyoti had acquired Huron Graffenstaden, a machine tool builder in France, at an investment of Rs 150 crore. Now a significant portion of these machines are engineered and produced by Jyoti in India. Jyoti has started producing high end automatic tool changers, live tool turrets etc. Various machined parts and sheet-metal parts for the machines are being exported.

Huron's turnover in the financial year ending March 31, 2011 is expected to be Rs. 250 to 300 crore. It's turnover in 2009-10 was Rs. 150 crore.

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