Toyota Kirloskar sees 58% revenue growth

Toyota Kirloskar Motor is expecting a 58 per cent jump in revenues and a 3.6 per cent rise in sales for the current fiscal.

"We expect revenues of Rs 2,700 crore (Rs 27 billion) for 2003-04 as compared to Rs 1,700 crore (Rs 17 billion) last year and sales of 34,000 units in 2003 as against 25,050 units in FY-03," TKM vice chairman Vikram Kirloskar told newspersons on Thursday.

"There are no intentions at present to raise the stake in the joint venture, which is currently one per cent. We have time till middle of next year to raise it if necessary to 11 per cent within a 12-month period," Kirloskar said.

Toyota Kirloskar Auto Parts company, another joint venture in which the Japanese entity holds 90 per cent stake, will manufacture transmissions and engine parts for overseas market, he said.

Asked if it was to meet Toyota's needs abroad, Kirloskar said a bigger transmission for a three-litre engine for the new Toyota model is being manufactured.

It is expected to go into full production next year with export revenues of around Rs 240-250 crore (Rs 2.4-2.5 billion), he added.

TKM managing director Atsushi Toyoshima said the company is aiming a sales target of 45,000 units by March 2004 and a market share of 40 per cent of the MPV segment as against the present 37.6 per cent.

"Having reached the landmark of 100,000 units, we are now planning to reach the 200,000 target within the next two years, with some newer models also," he added.

TKM is targeting businessmen and self-employed professionals and Qualis is now competing with Hyundai's Accent, Honda City, Mahindra's Scorpio and Tata's Sumo and Safari, he said.

Marketing director Satoshi Aoki said between January and August 2003, sales of the multi-purpose vehicle touched 20,055 units while Corolla (launched in February 2003) in the "C" segment and Camry (October 2002), the three box sedan, clocked sales of 5,248 and 812 units respectively.

Kirloskar said the plant at Bidadi in Karnataka was built with a capacity for 25,000 units and 850 employees four years ago. Plans are afoot to double the capacity, he said and added it currently has 2,300 employees.