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Sona Koyo Chennai EoU on stream

By Shanthi Kannan

CHENNAI, OCT. 29. Sona Koyo Steering Systems today inaugurated its 100 per cent export oriented unit (EoU) at its facility at Sriperumbudur near Chennai. Inaugurating the facility, the Chairman ad Managing Director, said, the company had invested Rs. 19 crores in the facility, which would be making manual steerings. It would make further investments to cater to overseas customers in future. At present, the EoU had orders from two U.S.-based companies — Koyo and Mando. The installed capacity of the unit was 2.5 lakhs per annum. It had an order of 10,000 units a month from Koyo and 5,000 units a month from Mando, Mr. Kapur said. He expected these to double in the next few months.

Mr. Kapur said the company was contemplating to make more investments in Tamil Nadu. Sona Koyo hoped to record a revenue of Rs. 19 crores in the first year of its operations. This would go up to Rs. 60 crores in the next 2-3 years, he added.

The company will soon set up a dedicated line in Chennai to manufacture power steering for Hyundai. It will invest Rs. 12 crores in the proposed facility which will have a capacity of 1.2 lakh units a year. At present, Sona Koyo is supplying the power steering to Hyundai from its Gurgaon factory.

Fielding a range of questions, he said the company had recently acquired a minority stake of 21 per cent in Fuji Autotech of France, Europe's fourth-largest steering column maker. The French company was a supplier to top European firms, including Renault and Peugeot, and a leader in truck and bus steering systems. The Chairman said the company was concentrating on non-automotive industry in a big way.

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