Auto component maker Sona BLW Precision Forgings (Sona Comstar) on Tuesday said it has commenced operations at its new manufacturing plant in Manesar, Haryana.
The facility, which is spread across five acres, will produce differential assemblies and e-drive modules for the company’s global customers.
The plant is expected to generate direct employment for 720 skilled workers.
The company has earmarked Rs 370 crore for the facility. Some of the investment has already been completed in the first phase, while the rest would be done over the next few years.
“This facility was built with the intention to focus on manufacturing differential assemblies for our EV customers globally. We have used state of the art technology and processes in this plant to meet the stringent quality requirements of our customers,” Sona Comstar Chairman Sunjay Kapur said in a statement.
Last month, the company filed papers to raise Rs 6,000 crore via an initial public offering (IPO).
As stated in the DRHP, the Blackstone promoted company intends to utilise the proceeds from the fresh issue to repay/prepay Rs 225 crore of its borrowings besides general corporate purposes.
The firm is into designing, manufacturing and supplying highly engineered critical automotive systems and components such as differential assemblies, differential gears, conventional and micro-hybrid starter motors, BSG systems, EV traction motors and motor control units.
It supplies components to automotive OEMs across the US, Europe, India and China, for both electrified and non-electrified powertrain segments and is not dependent on a single product, vehicle segment, customer or geography.
The company is also one of the two largest exporters of starter motors from the country besides being the largest manufacturer of differential gears for passenger vehicles, commercial vehicles and tractors in India.
Some of its key OEM customers include a global OEM of EVs, a North American passenger vehicle and commercial vehicle maker, Ashok Leyland, Daimler, Escorts, Mahindra & Mahindra, Mahindra Electric, Maruti Suzuki, Renault Nissan, Volvo and Volvo Eicher.