Auto component maker Sona Koyo Steering Systems today said that it will invest Rs 100 crore this fiscal on expansion of its production capacity, including the establishment of a new unit as it looks to foray into the commercial vehicles segment.
“We are investing Rs 100 crore as capex (capital expenditure) this year to expand our existing units. We will also set up a new pressure die casting unit at Dharuhera in Haryana,” Sona Koyo Steering Systems Vice-Chairman and Managing Director, Mr Sunjay Kapur, told reporters here on the sidelines of an ACMA Summit.
He said the new facility will be ready by the end of this financial year.
“Besides the new unit, we will also expand our existing facilities located in the Gurgaon-Dharuhera region,” Mr Kapur said.
When asked about the company’s plans for new product launches, he said: “We are looking to enter into the commercial vehicle and farm equipment segments, for which manufacturing will start from next year.”
The company is currently in discussions with major commercial vehicle makers, but has not received any orders yet, he added.
Commenting on the company’s sales target, Mr Kapur said: “There is a slowdown in growth, but we are still doing good...We are expecting a topline of Rs 1,200 crore on a standalone basis this fiscal, compared with Rs 1,000 crore last fiscal.”