Indo Schöttle Auto Parts Pvt. Ltd was established in 1987, this Indo-German collaboration was at that time one of the first bulk manufacturers of engine valve collects in India.
At present Indo Schottle has an annual installed capacity to manufacturer 150 million engine valve collects, 30 million rocker arm screws and 6 million parts and assemblies for turbochargers, Fuel systems and Hydraulics.
Most of the auto industry in India constitutes as its client base but Indo Schottle is now focused on charting off shore territories.
It has recently expanded its export units in Pune to cater to the US and European markets and its expected to increase its manufacturing capacity by almost 50%.
In the forthcoming Budget, Vijay Pusalkar, Chairman & Managing Director at Indo Schöttle Auto Parts Pvt. Ltd would like the Finance Minister to extend tax free status on export oriented units, EOUs, for another ten years.
Here are his views:
Firstly, Export of manufactured goods out of India has increased at a very rapid pace due to the single most important factor- Growth of EOU’s (Export Oriented Units) which are spread all over the country.
Today EOUs are present in many sectors like textiles, engineering, pharmaceuticals, auto components and software. The reason for their huge growth is the Income Tax exemption that they currently enjoy. Because of the Income Tax exemption, products and services they offer are competitively priced.
The current policy states that this exemption will cease to be available by the year 2009. This will severely hamper the EOUs and they will lose their competitive strength, and many units may also have to close down.
Therefore, I would like the Finance Minister to extend the tax free status for 10 more years.
Secondly, the auto component sector is currently burdened with high interest rates and an unviable excise duty structure. I would like to see interest rates come down by 2% to 3% and excise duty being brought down to 10%.
On his outlook ahead for the auto sector:
The auto sector will continue its rapid growth in the car sector for domestic use but more significantly as a manufacturing car hub for low priced small cars for export.
Since the current high interest rate regime is not justified and viable there is a strong case for reduction of interest rate. When this happens a large number of people will buy cars and motorcycles which will give a boost to the auto industry. I am very positive on the growth of the auto industry.
(With moneycontrol.com)
Comments
0 comment