ANG Auto has informed that the Board of Directors of the company at its meeting held on February 25, 2010 has discussed and approved the transfer of Sitarganj unit, to a 100% wholly owned subsidiary company of ANG Auto. The Sitarganj plant in Uttrakhand is currently in manufacturing trailers, containers and doing general fabrication and also executing the heavy metal fabrication jobs for BHEL. All these are heavy fabrication jobs for the infrastructure sector and the company sees a lot of opportunities in infrastructure space especially in the power sector.
Since the main area of operations of ANG Auto are Auto Components, which have very different manufacturing processes and market dynamics as compared to heavy metal fabrication, the management thinks it is in the best interests of the company to hive of the heavy fabrication plant into a wholly owned subsidiary. This will give it flexibility to build a new organisation Structure suited to the demands of project based work in the infrastructure space, and gives it the option of roping in a strategic technical/financial partners at a later stage to capitalise on the emerging opportunities in the infrastructure domain.
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