Steelcast Ltd, a leading Gujarat-based steel castings manufacturer, has announced plans to invest Rs 107 crore with the aim of doubling its current turnover to Rs 400 crore by 2015. The amount will be spent both on expansion and upgradation.

The bulk of this amount, around Rs 65 crore, will be invested in expansion of its Bhavnagar plant in Gujarat. This will boost the capacity of the plant from its current 24,000 tonnes per annum (tpa) to 30,000 tpa next year and 38,000 tpa in 2013-14.

Of the rest, Rs 25 crore will be spent on machining activities, Rs 10 crore on equipment for energy conservation and Rs 6.5 crore on environment & pollution control measures.

Chetan Tamboli, CMD of Steelcast Ltd, is bullish about the company’s prospects. “We expect strong growth in demand for our products from both the domestic and export markets,” he said.

The investment will be funded through long term debt, internal cash accruals and advances from customers.

Last month, Steelcast had announced a long-term agreement with the Caterpillar Inc under which it would set up a dedicated facility to manufacture steel casting products as per the specifications of the US giant. Caterpillar had provided an interest-free loan of $5 million (Rs 25 crore) to Steelcast, repayable over the next four years.