JTEKT plans to open a new plant and strengthen R&D facility in India

Thursday, Jul 12, 2018

Japanese auto component supplier JTEKT is planning to open a new manufacturing facility in India in order to meet the growing demand of steering systems from Suzuki, a top executive said.

However, the company hasn't decided on the quantum of investment yet which will be used to build the new plant.

"By end of this year, we will be sharing the details of our new plant in India which will be opened to support the demand from Suzuki," said Tetsuo Agata, President, JTEKT Corporation.

On the condition of anonymity, one of the JTEKT employees informed, "The new plant will open near Suzuki facility in Gujarat. We already have land there."

The company is also planning to expand existing R&D facility in India. Also, it plans to hire around 100 engineers to meet the future requirements like electric power steering systems and ADAS.

Agata added, "India is among the top five markets for JTEKT. Indian population will soon surpass China in near future. Potentially, India will become the bigger automotive market than China.
So, this is the reason we are putting more investments and resources to expand our Indian operations"

In June 2017, JTEKT Corporation bought its Indian partner Sona Group's 25.23% stake in Sona Koyo Steering Systems for about Rs 510 crore.

After the acquisition, JTEKT owns 70.45% shares carrying voting rights.

"Last year, we acquired Sona Koyo steering systems (SKSS) in order to strengthen our Indian business. Earlier, we used to have only two plants in India. Now we have close to nine manufacturing site in India. The other reason was to penetrate Indian car manufacturers like Tata Motors and Mahindra & Mahindra. We have to take the advantage of the Sona's network." said Agata

With 33 per cent market in electric power steering, the company is also planning to build a region-integrated management system, in order to enhance customer satisfaction and expand sales in the Indian market.

For the fiscal year ended in March 2018, the net revenue increased by 3.56% to Rs. 1254.52 Cr as compared to Rs.1211.44 Cr in the fiscal year 2017. While the Profit after tax increased by 32.89% to Rs.46.69 Cr against profit of Rs.35.13 Cr of the corresponding year.



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