Financial Daily from THE HINDU group of publications
Friday, Feb 04, 2005
Financial Daily from THE HINDU group of publications Friday, Feb 04, 2005 |
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Corporate
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Announcements Sona Koyo to make steering columns for commercial vehicles — Tech transfer from Fuji Autotech Sweden on cards Neha Kaushik
New Delhi , Feb. 3 LEADING auto components manufacturer Sona Koyo Steering Systems Ltd has decided to diversify into manufacturing components for the commercial vehicles segment and as a first step has zeroed in on making steering columns for commercial vehicles. "We have identified Fuji Autotech Sweden for a possible technology transfer tie-up in order to manufacture sophisticated steering columns for commercial vehicles. Though we are yet to finalise the investments which would be required to manufacture the same, they will not be very high," Dr Surinder Kapur, Chairman and Managing Director of Sona Koyo, said. Incidentally, Fuji Autotech AB (Sweden) is a sister company of Fuji Autotech (France) in which Sona Koyo had recently picked up a 21 per cent stake for 5 million euros. The remaining stake in the French company is with Fuji Kiko of Japan. Fuji Kiko is an associate company of Koyo Seiko (Japan), which in turn holds a 20 per cent stake in Sona Koyo. Fuji Autotech AB (Sweden) is a market leader in the commercial vehicle steering column segment, with a market share of over 80 per cent in Europe and about 50 per cent in the US. "We should be ready to launch the product by the end of the current calendar year. There is a fairly big market for steering columns for commercial vehicles and we have been encouraged by the response from all domestic commercial vehicle manufacturers," Mr Kapur said. Meanwhile, a plan to enter the segment of power steering gears for commercial vehicles is still in the initial stages. Analysts point out that recent months have seen rapid capacity expansions in this segment by other domestic manufacturers in anticipation of a spurt in demand following a recent official regulation that has made power steering mandatory for all medium and heavy commercial vehicles.
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