By IANS
Ranchi : Heavy Engineering Corporation (HEC) is planning to set up a wheel manufacturing plant here to cater to the growing needs of Indian railways.
“At present, we have to depend on orders from steel companies, mining and railways. The performance of HEC depends on the boom and slump in these sectors. We are planning to enter into a steady business,” G.K Pillai, chairman and managing director (CMD) of HEC, told IANS.
“If we succeed in setting up a wheel manufacturing unit, we will get an annual business order of Rs 5 billion,” he said.
“Our new venture will make the company viable and profitable,” Pillai said.
“We have already discussed the issue with the railway authorities. At present, railways import wheels from China and other places. There is dearth of companies manufacturing wheels and it is where HEC can succeed,” he said.
Established in 1963, HEC was a loss-making public sector unit. Two years ago the Board of Industrial and Financial Restructuring (BIFR) recommended its closure.
Last year, however, HEC posted a net profit of Rs 28.4 million.
In the first six months of the current financial year, the company has registered Rs 1.80 billion in sales.