Goodluck Industries to add ₹500 cr revenue from new hydraulic tube plant
Goodluck Industries, a leading producer of value-added steel products, expects to generate an additional revenue of ₹500 crore from the new hydraulic tube manufacturing plant in Uttar Pradesh.
The newly operational plant is equipped with cutting-edge technology, enabling it to supply hydraulic tubes to industries such as construction machinery, light commercial vehicles and industrial equipment.
Ram Aggarwal, CEO, Goodluck India told businessline that the demand for hydraulic tubes has been increasing steadily due to the government investment in infrastructure and booming real estate segment even as the new product launched will be a major import substitute.
Besides the incremental revenue of ₹500 crore, he said the product has the ability to generate EBITDA of 16 per cent.
The plant has an annual production capacity of 50,000 tonne annually and given the strong demand the capacity will be doubled once the new plant hits 60-70 per cent by mid-next year.
Hydraulic tubes are tailored for both automotive and construction applications, with high-quality assurance standards in place.
The company is focusing on launching high-margin products aimed at the defence and aerospace sectors, as well as those designed for the automotive tubing segment.
Goodluck India is also among the major auto-tube suppliers globally. The company is on the vendor list of Elon Musk’s Tesla besides supplying to OEMs of BMW, Volkswagen, Audi and Mercedes-Benz.
The company will also commission a dedicated plant by March for supply to the defence sector. It will produce the shell for bullets to be used in the defence sector.
The plant is currently in trial production and the output is being tested for its quality, he said.
The company also plans to collaborate with international buyers and Indian defence agencies given the strong demand.
Goodluck Industries also supplies specialised high-grade steel and hydraulic components for the bullet train projects. The bullet train project will boost the company’s presence in infrastructure-related projects.
“Strong growth is anticipated from this sector over the next 3–5 years though there may be near term challenges due to economic slowdown,” he said.