New Delhi, Oct. 6
Auto components major Sona Group on Friday said it would make an initial investment of $10 million to set up a gear manufacturing facility in North America.
"The investment will be made by our joint venture company Sona Okegawa Precision Forgings Ltd and the plant will have a capacity of 5 million units per annum," the Sona Group Chairman and Managing Director, Mr Surinder Kapur, told newspersons on the sidelines of a CII conference.
Mr Kapur said the company had been looking out for acquisitions to have a presence in the region. However, with the right target not being available it had chosen to set up its own manufacturing unit. The plant is expected to come up by next year.
Commenting on the funding for the project, Mr Kapur said that funds would not be a problem, as the Group will use a lot of its own resources, besides which several private equity investors were also willing to provide funds.
Sona Okegawa is a joint venture company between the Sona Group and Japan's Mitsubishi Materials Corp, in which the former holds a majority stake of 60 per cent.
Mr Kapur said the Group as a whole was looking for increased exports as it expanded its footprint across the world. "Sona Group has set a target of achieving 45 per cent of its revenues from exports by 2010," he said.