SPL would then be able to supply injection-moulded components. The new foray could take up to two years and Devale did not rule out a joint venture as access to technology would be critical. SPL, with an equity base of Rs 4.35 crore, is targeting a turnover of Rs 25 crore by 2001. Devale said a minimum investment of Rs 20 crores would be needed to create facilities for product design, tool design and tool manufacture. uSPL could consider setting up a paint shop, which would require an investment of Rs 10 crore.

Siro Plast is likely to post a turnover of Rs 11 crore(Rs 14 crore) and a net profit of Rs 1.5 crore in 1997-98. The lower turnover is attributed to the overall economic slowdown, but has been propped up by SPL's supplies to the railways, which it had reduced over the past two years. The company, which had accumulated losses of Rs 1.29 crore, wiped them out in 1996-97.Mahindra Holdings and Finance Ltd recently acquired a 21.03 per cent stake in Siro Plast Ltd from Sicom for Rs 20 per share. This has pushed up the M&M group's holding in SPL, to 41.20 per cent. Roplas India, another M&M group company, holds 12.99 per cent.

Devale said the Sicom investment was in the nature of a promotional partner for ten years, which got over some time back.SPL is expected to venture into exports by tying up with major manufacturers. Several foreign heavy-duty and off-road vehicle manufacturers have indicated that they would source their global requirments for specific items from India. Siro Plast is believed to be in talks with these manufacturers for positioning itself tobenefit from such a move by supplying the items.