Subros to set up second new plant at Sanand by 2019; feasibility study underway, Auto News, ET Auto

The new plant is going to take up the total production capacity associated with Subros at Sanand to an yearly 500, 000 units. Duggal states feasibility studies are underway but it will surely take six months to freeze in the investment figure for the new grow.

NEW DELHI: Thermal items manufacturer, Subros Limited is gunning for a double-digit growth of about 15-18 percent during 2017-18, operating on the back of expected recuperation in the passenger vehicle and industrial vehicle segments.

Contributing to this improve in business, would be Suzuki Motor Corp’s (SMG) plant in Mehsana area of Gujarat. Maruti Suzuki is really a key customer of Subros.

This February, Subros had commenced materials of air conditioning systems for the Maruti Suzuki Baleno being made in Gujarat from its Sanand plant in the condition. It is now gearing up to beef convenience of both the carmakers current and upcoming requirements.

With the new generation Maruti Suzuki Swift to start production through Gujarat by December, additional element supplies from Sanand will stream in for the new model.

PK Duggal, VP corporate planning, Subros informed ETAuto that to meet the carmakers increased demand at Gujarat, Subros will set up a second and brand new manufacturing facility at Sanand by 2019. The first plant from where parts are currently supplied is an old set up unit that was set up to supply air conditioner systems for the Tata Nano which was made in close proximity.

The grow has an installed capacity of 250, 000 units per annum but since regarding 30, 000 units are provided for the Nano currently, the balance is perfect for Maruti Suzuki.

The new grow will take up the total production capability of Subros at Sanand for an annual 500, 000 units. Duggal says feasibility studies are underway and it will take six months to deep freeze on the investment figure for the brand new plant.

Also Read: Subros reopens fire-hit Manesar plant

This new manufacturing unit will house manufacturing plus backward integration activities with the aged facility at Sanand assembling air conditioner systems that are made at Manesar.

With new businesses in the pipeline, and with the auto industry on the development trajectory, it is bullish of enhancing its performance considerably in FY� ***********************************).

In addition, the vehicle segment is expected to be a development driver for the auto component creator. A notification related to mandatory utilization of air conditioning systems in truck cabin rentals was to be notified by one July but has now been postponed. It is now expected to come into force simply by 1 January 2018.

This will certainly spur business growth for Subros. The notification will reduce street accidents as it will minimize operater fatigue while on road.
A 10 percent growth over last financial is envisaged by Subros by means of businesses in trucks, buses, railways and home air conditioning segments.

Last year Subros had entered into a good entrustment production contract with Western component supplier Denso Corp intended for engine cooling module (ECM) devices. It had restarted its rad production at Noida and ECM assembly at the Manesar facility.

The ECM assembly plant has included an investment of Rs 50 crore and will attract another Rs 20 crore in FY2018-19, according to Duggal, for enhancing capacity and incorporating new lines. This ensues through Subros� focus on localization and de-risking its business.

Also Read: Subros plans to raise funds via NCDs

In May 2016, its Manesar service had been severely damaged in an open fire that struck the complex plus devastated plant and machinery. Subros re-opened this unit end Mar 2017.

A joint venture between the Suri family, Denso Corp and Suzuki Motor Corp, Subros clocked the topline of Rs 1750 crore in 2016-17 growing 17 % over the previous fiscal.

With brand new businesses in the pipeline, and with the car industry on the growth trajectory, it really is bullish of improving its efficiency considerably in FY� ***********************************).

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