Sona Comstar to invest Rs 1,000 crore by FY25 in production capacity expansion

7 Nov 2022 , 08:49 AM

According to Group CFO Rohit Nanda who talked to PTI, auto component manufacturer Sona BLW Precision Forgings Ltd (Sona Comstar) expects to invest up to Rs1,000 crore by FY25 to expand up capacity, mostly for EV market.

The company, a significant supplier of systems and parts to the automotive industry’s electrified and non-electrified powertrain sector, anticipates that by 2025, sales from the electric vehicle (EV) segment would represent up to 45% of its overall revenue, up from the current 25%.

“I will estimate that during the course of FY23 plus two more years, FY24 and FY25, our expected capex expenditure will range from Rs900 crore to Rs1,000 crore. Around 75% to 80% of this goes toward the EV industry “said Nanda to PTI.

He added that Sona Comstar would build a new plant in Manesar, Haryana, as part of the expansion plan, adding that the capacity of the current facility has been fully utilized.

The business had also relocated from a smaller location in Pune to a new, larger site.

Sona Comstar reported revenue of Rs1,247 crore for the first half of 2022—23, an increase of 15% from the same time in the previous year.

According to him, the company provides its various EV components for two-wheelers, three-wheelers, and even passenger vehicles on the domestic market, but only four-wheelers for passenger cars and commercial vehicles are exported.

Additionally, the business has been contracted by an Indian automaker to provide differential assemblies for both its planned passenger and commercial vehicle electric vehicle models. The program’s production gets underway in FY24.

Although it is essential in terms of direction, he continued, “we are currently delivering differential gears for the same customer (and it is) a step forward from selling components to subsystems.”

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