SJS Enterprises Ltd, which makes decorative aesthetic products for the automobile and consumer appliances sector, has planned to invest ₹30 crore in establishing a capacity for producing optical cover glasses -- a protective glass that covers TFT (Thin Film Transistor) screens in SUVs.
The Bengaluru-headquartered company had earlier informed that it was awarded the quality system certificate for the new technology of optical cover glass. It was in the process of proof of concept and validation phase by its customers and the management indicated that customers were satisfied with the proof of concept.
- Also read: Vehicle-makers bet big on rural drive
“SJS Enterprises plans to invest ₹30 crore to set up a cover-glass capacity with a potential revenue of ₹100 crore. Orders for the same are expected in FY25, and production will commence in FY26. Cover-glass content/vehicle for mid-size SUVs is estimated at ₹4,000/unit, according to a report by Nuvama Institutional Equities, which recently attended SJS Enterprises Analysts’ meet.
The company had said it was working on products such as optical plastics/cover glass that will increase its kit value by three to four times from the current ₹1,200-1,500 per vehicle in passenger vehicles.
The optical cover glass is a very high value part and the company expects the same to help increase SJS’s content per four-wheeler by almost 10 times. Its key customers include Mahindra & Mahindra, Tata Motors, TVS Motors, Royal Enfield, and Honda Motorcycles, among others.
The optical cover glass or plastic is seen as a game changer for the company. It will aid in reducing the two-wheeler dependence of its standalone SJS business, which has 55-60 per cent exposure to the two-wheeler industry.
“SJS standalone kit value in the passenger vehicle segment will increase over 10 times with the introduction of optical cover glass from being a 2D, 3D dial supplier to the PV segment to become a supplier of high-value premium products,” Sanjay Thapar, CEO & Executive Director of the company said during the Q3FY24 earnings call of the company.
- Also read:Auto players line up array of new EV models in coming years on govt push to green mobility
Overall, the company is likely to invest ₹40-45 crore in expansion in FY25 excluding its subsidiaries Exotech and Walter Pack expansion, which will be finalised during next fiscal.
Meanwhile, the company has guided for 45 per cent growth in FY24 on account of growth in two-wheeler, passenger vehicle, and consumer durable segments as well as exports. It clocked a total revenue of ₹433 crore and profit after tax of ₹67 crore in FY23.