Singh noted that the capex also depends on the COVID-situation that how much the company would be able to put in during the fiscal
Gurugram-based auto component company Sona Comstar has earmarked a capex of around Rs 600 crore for the current fiscal as it remains positive about sustaining its growth trends in the current fiscal and beyond, a senior company official told Economic Times.
MD and Group CEO Vivek Vikram Singh said that a large share of this capex will be spent in the Gurgaon plant to further build the capacity to expand its electric vehicle business.
“The remaining part will be spent in our differential assembly plant as it is already running at full capacity and we need to expand this to cater the growing demand. Additionally, we are also adding forging capacity for gears and electric traction motors for two-wheelers and three-wheelers,” told Singh.
Singh noted that the capex also depends on the COVID-situation that how much the company would be able to put in during the fiscal.
The company has an unexecuted order book of INR 14,000 crore at the end of the first quarter which is diversified across electric (including BEV and plug-in hybrids) and non-electric segments contributing around 57 percent and 43 percent respectively.
“The electric share of order is further split into passenger vehicles, two-wheeler, three-wheeler and commercial vehicles. The EV pipeline has 12 different programmes including 5 for PV customers, 3 for two-wheeler and three-wheeler customers and one for electric CV manufacturers,” Singh said.
According to Singh, the company has almost reached that point where it is catering to more hybrids and EVs customers than ICE vehicles. “One out of every eight BEV differential assemblies sold in the world come from our plant in Manesar,” Singh noted.
The company is engaged in the business of manufacturing and assembly of starter motors, controllers, alternators and starter kits forming part of automobiles and EVs in the domestic and global market. The firm invested about INR 219 crore in 2020-21 fiscal.
Sona Comstar has 9 manufacturing and assembly facilities of which 6 are located in India and one each in China, Mexico and the US. Also it has eight warehouses across India, USA, Germany and Belgium. Its newest Chakan plant, which will manufacture both gears and differential assemblies, will be operational by the end of this year.
Earlier this month, the auto component maker reported its first earnings as a listed entity.Its revenue from operations for Q1 stood at INR 500.7 crore, up from INR 153.36 crore earned during the first quarter of FY21.
