Category Auto Components

Setco Automotive to invest Rs 250 crore in Gujarat

Automotive components manufacturer, Setco Automotive has announced its plans to invest Rs 250 crore in Gujarat. The announcement was made during the ongoing Vibrant Gujarat Global Investors Summit (VGGIS) 2009, in Ahmedabad, and an MoU has been signed between Setco and the Gujarat government.

Among other things, Setco will set up a new SEZ unit in Gujarat, at an investment of about Rs 75 crore, and invest Rs 50 crore towards the modernisation and expansion of its plant at Kalol, near Baroda. The company will also set up a new plant at Kalol, in a joint venture with German company, FTE Automotive, for which the total investment is estimated to be around Rs 100 crore.

One of the largest manufacturers of clutches for commercial vehicles, Setco Automotive employs more than 700 people...

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Sona Koyo: Growth slowdown in FY09

Sona Koyo Steering Systems expects slower sales growth in FY09, as a result of a tight monetary policy hurting car demand. However, the company is hopeful of better margins on increasing local sourcing.

‘We expect a 10-12 percent growth in sales in 2008-09,’ said Surinder Kapur, chairman and MD, Sona Koyo. For FY 2007-08, Sona Koyo’s net sales rose 17.7 percent on year to Rs 684 crore. The company expects better margins in the current fiscal, due to increased local sourcing for its column type electric power steering system, which makes up about 30 percent of its annual sales.

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Rane NSK Steering Systems Ltd inaugurates steering column plant at Bawal, Haryana

Rane NSK Steering Systems Ltd (RNSSL), one of India’s leading Steering System makers, today inaugurated a new, state-of-the-art production plant at Bawal, Haryana, 80km southwest of Delhi. The ceremony was led by L Ganesh, chairman, Rane Group, and M Degawa, director and executive vice president, NSK Limited, Japan.

RNSSL has invested Rs 377 million in the new facility, with initial annual capacity to produce 200,000 electric power steering systems for vehicle assembly plants in the region. ‘We have decided to invest in this plant keeping in line with our overall strategic growth plans. RNSSL will grow in its chosen segments through expansion, upgraded technology and synergetic diversification...

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Car manufacturers, auto component makers struggling with rising steel prices

Vehicle manufacturers in India are currently under pressure from vendors, who want to raise component prices to offset the relentless increase in steel prices. If component vendors do increase prices, vehicle manufacturers may also be forced to increase prices, with the consumer having to end up bearing the brunt of it all.

Steel producers did announce a price cut last week, but it wasn’t for the alloys of steel used by automotive components manufacturers. ‘The alloy steel has not been impacted by the price cuts at all, leaving the industry sandwiched between fixed-price supply contracts on one hand and the rising prices of steel on the other, which has severely impacted on the profitability of the industry,’ says Sanjay Labroo, president, ACMA.

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