The Hindu Business Line : Sona Koyo, Japanese co to invest Rs 150 cr in greenfield project

Auto component maker Sona Koyo Steering Systems Ltd, part of the Sona Group, along with its joint venture partner would invest Rs 150 crore for a greenfield project at Bawal in Haryana. This would be for the company’s new venture to manufacture column type electric power steering systems in collaboration with its Japanese partner, JTEKT Corporation.

“The total cost of the project would be Rs 150 crore with an equal equity between both the partners,” said Mr Surinder Kapur, Chairman and Managing Director, Sona Group, to Business L

ine. The necessary application for obtaining the requisite approval to the proposed joint venture has been made to the Foreign Investment Promotion Board.

New venture

Post-approval Sona Koyo expects the production facility to be operational by early 2010. Mr Kapur added that the new venture would ensure access to technology and efficiency in areas where the company has not had a presence.

Currently, the group’s manufacturing facilities are located in Gurgaon, Nasik, Pune and Chennai.

The company would be forming a separate subsidiary for the joint venture with JTEKT Corporation.

Sona Koyo Steering Systems Ltd’s stock opened on Thursday at Rs 46.40 and closed at Rs 44.70.

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