CHENNAI: Auto ancilliary maker Sona Koyo Steering Systems on Friday opened an 100 per cent EoU (export-oriented unit) here and announced that it would treble its investments in the unit over the next 3-4 years to cater to the demand from overseas customers.
Sona Koyo, the flagship of Rs 500 crore Sona group of companies, has invested Rs 19 crore in the new facility in Sriperumbudur, about 40 km from here.
"The investment will be trebled over the next 3-4 years, to meet the demand from its overseas customers," M Nagai, executive director, Koya Seiko, Japan, told visiting reporters at the Sriperumbudur facility.
Koya Seiko is the joint venture partner in the Delhi-based Sona Koyo Steering.
He said the company expects revenues to the tune of $4 million in the next 12-months from the unit.
Currently, the EoU has orders from Koyo, USA and Mando, USA among others.
Sona Koya, which had acquired 21 per cent stake in Fuji Autotech, France, one of Europe's largest steering column manufacturers earlier this month, considers the acquisition an important first step towards its globalisation plan, he said.
Surinder Kapur, chairman and managing director, Sona Koyo, said the Chennai facility was India's first EoU for the automotive ancilliary sector.
"The facilities we have established in Chennai are world class. The EoU will further establish Sona Koyo as a major player in the automotives ancilliary industry,” he said.
Sona Koyo is India's largest manufacturer of steering systems with over 45 per cent domestic market share. |
