With domestic demand on a slump, auto component major Sona Koyo Steering Systems is looking to increase exports, mainly to the US to cash in on the rupee depreciation.
The company, one of the largest manufacturers of steering systems, also said that it is undertaking on a month-on-month basis its ongoing capex of up to Rs 100 crore.
“We are looking for export opportunities, especially in the US for off highway vehicles,” Sona Koyo Steering Systems Vice-Chairman and Managing Director Sunjay Kapur told reporters here today on the sidelines of ACMA annual convention.
He said that the demand slowdown in the auto industry has affected the component sector and the company is utilising about 70-75 per cent of the total capacity.
When asked if the company has held back investments, he said: “No we are not. But we are doing it on a month-on-month basis.”
The company had earmarked about Rs 80-100 crore capex, mainly for relocation of its Gurgaon plant to other locations. The process is scheduled to be completed by 2015.
On whether the slowdown has forced the company to retrench workers, Kapur said : “No, we are currently undertaking summer trainings for most of the workers.”
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