Sona Koyo to invest Rs 400 cr
Sona Koyo Steering Systems will invest Rs 400 cr over a period of four years for funding its expansion plans.india Updated: Feb 07, 2006 13:59 IST
Sona Koyo Steering Systems Ltd on Tuesday said it will invest Rs 400 crore over a period of four years for funding its expansion plans as well as set up Sona AutoComp Inc in the US as part of its globalisation strategy.
"The investment will enable us to achieve our target growth of Rs 1000 crore by 2010 from its expected turnover of Rs 500 crore by 2006-07," Sona Group chairman Surinder Kapur said.
The investment, aimed at the company's current capacity expansion plans at its various facilities and new locations would result in total capacity of 30 lakh pieces of manual steering gears, 5 lakh of hydraulic power steering gears, 2.50 lakh of EPS (Electronic Power Steering).
In a bid to offer more efficient services to its customers, the Sona Group has also incorporated a company, Sona AutoComp Inc in the USA, a company statement said.
Sona AutoComp, a joint venture of all the Sona Group companies would serve as the sales hub for the US based clients and the company has put together an export target of Rs 300 crore set to be achieved by 2010, it said.
"We see the US as a big market for the auto component manufacturers. In order to improve our responsiveness to the clients and service suppliers, we felt the need to be locally represented in the market that currently accounts for a very large percentage of our exports," he added.
First Published: Feb 07, 2006 13:59 IST