Date:21/07/2006 URL: http://www.thehindubusinessline.com/2006/07/21/stories/2006072104000300.htm

Back Sona Group to set up subsidiary in France for exports

Neha Kaushik

New Delhi , July 20

The Rs 800-crore Sona Group is in the process of setting up a company in France called Sona Autotech (France), which would handle the group's exports to Europe.

According to Dr Surinder Kapur, Chairman, Sona Group, exports to Europe are set to see a significant jump, especially with Sona Koyo commencing supplies to Fuji Autotech, in which it holds 17 per cent stake.

The company expects a business of 30 million from Fuji Autotech, which also has subsidiaries in Brazil and the Czech Republic, by 2009. The figure is expected to be about 1.5 million in the current year.

Sona Autotech (France) would set up a warehouse to handle exports of all Sona group companies including Sona Koyo, Sona Okegawa, and Sona Somic Lemforder. Exports of Sona Somic Lemforder are also expected to see an increase with the company likely to commence exports to ZF Lemforder soon.

The group already has a subsidiary in the US, which handles its exports to the region.

The Sona group is targeting exports of Rs 150 crore this fiscal, most of which will come from exports by Sona Koyo, up from Rs 100 crore last year.

Sona Koyo had earlier this year said that it would invest Rs 400 crore to expand capacity over the next few years to almost treble its turnover to Rs 1,000 crore by 2010, a significant proportion of which will come through exports.