Subros sees FY11 rev rise 22 pc

India's largest auto airconditioning maker, Subros Ltd , expects sales to grow by about 22 per cent as it adds more capacity to feed growing demand from a resurgent auto industry, a top official said.

Subros, a joint venture between the Suri brothers with Japan's Denso Corp and Suzuki Motor Corp, hopes to clock gross sales of 12 billion rupees in FY11 against 9.83 billion rupees a year ago, Managing Director Shradha Suri Marwah told Reuters on Monday.

"We are expanding capacities within our plants...we are also foraying into the commercial vehicles space," she said, adding she expects profit before tax to be 4-5 per cent of total sales for the year.

Subros plans to double its capacity to 2 million units in the next 3-4 years and has earmarked a capital expenditure of 1-1.2 billion rupees for it, Suri Marwah said.

The capex will be financed through an equal mix of internal accruals and debt and the firm has plans to raise debt worth upto 800 million rupees over three years, Suri Marwah said.

In June the firm set up a JV, Denso Subros Thermal Engineering Center India, in which Denso will hold 74 per cent and Subros 26 per cent, to design auto airconditioning systems and other devices.

"In the first year of operations, which is going to begin by around September this year, we expect around 200 mln rupees of revenue to begin with, this will be in FY11," she said.

At 1.30 pm, shares of the firm were up 1.98 per cent at Rs 48.95 in a flat Mumbai market.