SSS Springs, a leading spring manufacturer, has partnered with Daewon, South Korea-based leading automobile seating manufacturer, to set up an advanced seating systems manufacturing facility at Sriperumbudur near Chennai under a 60:40 joint venture.

The SSS Springs-Daewon JV is the culmination of several years of partnerships in the auto-components space. Both partners expect to invest in excess of $25 million in phases in the new plant and in a R&D unit that will develop India focused products.

“The JV with Daewon is to anchor our entry into seat modules for the high-growth metro and railway sector in India, and automotive thereafter. In the next 10 years, India will build the largest number of metros in the world with over 50 cities, up from the current 10 cities with metros. The JV will be addressing a market valued at $1.6 billion+ per annum,” said Satish Machani, Chairman and Managing Director, SSS Springs.

Seating for metros

The new plant, which will be spread over 30,000 square feet in the first phase, has bagged a significant order from a global transportation major to supply seating systems for India’s metro projects. Bengaluru-based SSS Springs already operates multiple manufacturing plants in Chennai.

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“Daewon has been very positive on the India story for a long period of time. We were looking to translate our global leadership in the seat’s module business across rail and automotive segments to a sustainable long-term strategy for India. The JV will bring the latest technologies in terms of light weighting, design, ergonomics, safety and high-speed to the Indian market,” said Herbert Kim, Director, Daewon Corp.

Expanding market

India’s metro railway network covers 800 km, and is expected to add another 1,100 km in the next decade. An additional 1,000 km of metro connectivity has been proposed. By 2047, India is expected to have metro connectivity across 100 cities stretching 5,000 km, the largest in the world, surpassing China.

The joint venture is expected to cater to strong business opportunity in the metro rail segment. The advanced seating systems will be a key requirement in the near future. Seating systems will also be needed by luxury bus manufacturers and carmakers. Besides serving the domestic market, the JV is expected to offer products for exports in the coming years, it said.