Global automotive systems and components manufacturer Sona Comstar will be investing ₹52.9 crore for the expansion of its new plant in Pune.
The company, which has manufacturing plants across India, China, Mexico and USA, informed in a stock exchange filing that it has shifted its operations from its existing Pune plant at MIDC Bhosari Industrial Area to a new bigger facility at MIDC, Chakan Industrial Area. “The Board approved the capacity expansion of this new Pune plant from 11.8 million gears to 20.1 million gears by FY25,” the company stated in a stock exchange filing.
The company said it has a new order book of ₹23,800 crore as of December 31, 2022.
The existing capacity utilisation of plant is at 65 per cent. The expansion, which will be completed by the end of the financial year 2025, will be funded by internal accruals and debts.
Sona Comstar stated that the new manufacturing plant is capable of manufacturing gears for electric vehicles and non-electric vehicle applications that will serve customers globally.
According to ICRA, the automotive industry’s revenue will grow by 5-8 per cent in FY24, driven by electric vehicles, premiumisation of vehicles, focus on localisation, improved export potential and change in regulatory norms.