Setco To Jack Up Exports, OEM Sales To Double Turnover By 2019

Mumbai-based Setco Automotive, the largest manufacturer of premium quality Lipe brand clutches for medium and heavy commercial vehicles and farm equipment sector, is anticipating to double its turnover by the end of FY 2018-19. The company that recorded a turnover of Rs 570 crore in 2016-2017 is planning to lift its revenue by enhancing exports and supplying catering more to the OEM customers.

- Ramya Srinivasan

“We expect 10 to 15% growth in this year’s turnover and some marginal improvement in EBIDTA margin. In the next 3 years, we expect our turnover to be Rs 1000 crore. The major contributors will be increased exports, tractor business and the growth in M&HCV. Our expectation of the future is to meet capacity requirements of the OEMs and upgradation of plant and machinery. We have to make sure that our supply chain can meet our requirements to enhance production. So supply chain management will be a key focus for us.” Udit Seth, Joint Managing Director, Setco Automotive Limited, told Auto Components India.

By the end of the next financial year, Setco plans to grab 25-30% market share. The downtrend in the market affected the first half of the year but the company feels that the market is picking up well. “We have the line share of business with all the OEMs. When we get schedules from OEMs, we directly correlate the schedules for OE business and after-sales is planned based on the last 2 years as the clutches come for replacement in every 2 years.” he added.