Rico Autos foresees Rs 2,000 crore turnover by 2020

Gurugram based auto parts maker Rico Auto Industries has claimed the procurement of orders worth 1,200 crore from electric vehicles manufacturers.

Following a three-way future growth strategy, the company expects revenue of Rs. 1,500 crore in the FY 2018-19 and a turnover of Rs. 2,000 crore in the following year.

In order to reach this target the company has sanctioned an investment of Rs. 400 crore in the next three years.

Chairman, Rico Auto Industries, Arvind Kapur told to ET, “We launched products in two-wheeler aftermarket last year and received a good response so we are launching products in four-wheeler segment. We expect to get Rs. 100 crore from this segment.”

Moreover, the company plans to venture into defense sector of the country on account of blooming demand of vehicles run on renewable energy. It is also aiming to build up its export business and earn a revenue share of 40 per cent to the total revenue in the next two years.

Further, the company seeks to patiently reach out to more potential customers and gradually increase its market base to electric vehicle segment.

“Currently, the supply to EV makers will take about 10 years but this is conservative approach. We expect to get additional orders in the due course. We are looking at all the opportunities and we don’t comment on market speculation”, Arvind said.