STAFF REPORT KHI: The Agriauto Industries Limited has dropped a hint to invest Rs 1.05 billion for the establishment of its fully owned subsidiary in the name of “Agriauto Stamping Company (Pvt) Limited” in Pakistan.
“The stamping company would carry out the operations of stamping of sheet metal parts, sub-assembling and checking of fixtures/jigs manufacturing for the auto sector from July 2014,” says a press release.
The Agriauto Industries itself produces parts and components of automotive vehicles, motorcycles and agricultural tractors whereas its major clients include Indus Motors, Pak Suzuki Motors, Hino Pak Motors, Sindh Engineering, Dewan Farooq Motors Ltd, Adam Motors, Millat and Al-Ghazi Tractors Ltd and Dawood Yamaha.
The establishment of a stamping company would enable agriauto industries to diversify its business into the auto industry and would enable it to earn income apart from its core business operations.
The company operates mostly on cash generated through its business operations and has negligible debt in its books. Whereas, the companys total reserves and cash and cash equivalent as at 1QFY12 amounts to Rs 2.113 billion and Rs 1.073 billion respectively.