The Hindu Business Line : Sona Koyo setting up facility in Bengal

New Delhi May 10 Sona Koyo Steering Systems would be setting up a manufacturing facility in West Bengal next year as part of its Rs 400-crore expansion plan announced earlier.

The move would enable the company to cater to Tata Motors' much-awaited one-lakh car. Sona Koyo would also be setting up a similar facility in Uttaranchal by 2008 to meet the requirement of Tata Motors as well as Mahindra & Mahindra.

Power Steering

"We would be setting up a unit in West Bengal to cater to Tata's small car in 2008. We are also exploring setting up a unit in Bangalore or Pune to supply to General Motors and Toyota," said Mr Surinder Kapur, Chairman and Managing Director, Sona Group.

Sona Koyo would also be supplying its product for the new Logan from the Mahindra-Renault stable. The company, which last year forayed into electronic power steering systems in partnership with Japan's JTEKT Corporation, is also gearing up to enter the North American market for the same by the end of the year.

Electric Vehicles

"Currently, we are importing significant portion of the technology for the electronic power steering system for the domestic market. As we bring in more localisation through our Daruhera plant near Pune, we would also enter the North American market for off-highway vehicles such as tractors, golfcarts, lawn-movers and electric vehicles. We expect to supply to about 1,00,000-2,00,000 vehicles which will fetch us revenues of Rs 100 crore over the next two years," said Mr Kapur.

At present, Sona Group exports add up to Rs 55 crore, of its total revenue of Rs 560 crore. However, with its thrust on the North American market, the exports on its own and through its joint venture with Fuji Autotech, it expects to garner around Rs 200 crore of revenue over the next two years.

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