Pricol Ltd, a leading vehicle dashboard manufacturer, has announced a significant capital expenditure plan for FY25, with investments ranging from ₹200 to ₹220 crore. The investment aims to expand production capacities across various product lines as the company continues its growth trajectory.
“Our capacity utilization is currently hitting almost 85 percent. Hence, we are now enhancing capacity and undertaking capex at our new plants in Pune and upgrading our facilities in Coimbatore and Manesar,” said Vikram Mohan, Managing Director of Pricol, during the Q4FY24 earnings call.
This investment is part of a broader strategy, with Pricol having previously indicated a total capex of ₹600 crore over three years (FY23-25) for organic growth. The FY25 capex will specifically focus on expanding capacities in key product verticals such as digital instrument clusters and PCB manufacturing.
Pricol’s market share in instrument clusters has improved and is expected to grow further amid strong order wins. Notably, the company secured a significant order from Honda Motorcycle & Scooters India, the country’s second-largest two-wheeler manufacturer by volume. This influx of orders is poised to significantly boost Pricol’s topline.
Growth Potential in EV and New Product Lines
Despite being in the early stages of the electric vehicle (EV) business, Pricol sees substantial growth potential. The company is currently collaborating with 18 EV original equipment manufacturers (OEMs) for instrument clusters. Pricol expects its market share in the passenger vehicle segment to grow from 6.8 percent to 10 percent.
In the disc brake business, Pricol has a current setup capacity of ₹120 crore per annum and has secured orders from six companies. To meet the rising demand, the company is ramping up its disc brake capacity through two new units—one under construction and another just starting. Upon completion, Pricol will have a capacity of ₹300 crore per annum.
Innovations and Strategic Partnerships
Pricol, headquartered in Coimbatore and valued at ₹2,285 crore, has developed a prototype of the ‘E-cockpit’ targeted at passenger and commercial vehicle customers. The company has also showcased innovative products such as connected vehicle solutions and Heads-Up Display (HUD) for passenger vehicles.
“We have developed prototypes and proof of concepts for the E-cockpit and showcased them to various customers. We have announced a partnership with Chinese company TYW for vertically integrating screens and other components, positioning us well for future discussions,” said Siddharth Manoharan, Director of Strategy at Pricol.
For connected vehicle solutions, Pricol has partnered with Sibros to develop proof of concepts. These solutions have been showcased to both domestic and international customers, with ongoing testing by international two-wheeler OEMs.
Future Outlook
With the upcoming investments and strategic expansions, Pricol is well-positioned to continue its growth and enhance its market presence. The company’s focus on innovation and strategic partnerships is expected to drive its success in both domestic and international markets.
Pricol’s continued investment in production capacity and new technologies underscores its commitment to staying at the forefront of the automotive industry, ensuring it meets the evolving needs of its customers and leverages emerging opportunities.