Sogefi Group invests Rs 25 cr in Chakan unit

Italian auto component manufacturer Sogefi Group has set up a new plant at Chakan near Pune to produce filtration systems, flexible suspension components, air management and engine cooling systems. It’s a 51: 49 joint venture with group company Allevard Rejna Autosuspensions and Imperial Auto India in 2010 to manufacture elastic suspension components for the Indian automotive sector in India. The Sogefi Group has invested over Rs 25 crore in this facility.

The company has another two manufacturing units at Bangalore and Gurgaon. With this, company’s total investment in India is Rs 65 crore.

The Pune plant will manufacture stabilize bar and torsion bar for passenger cars and utility vehicles.

To start with, the new plant will manufacture suspension systems for Tata Motors Ltd, Mahindra & Mahindra Ltd, Fiat and Piaggio Vehicles.

Plans are also underway to serve the needs of Sogefi Group's other global customers, including General Motors, Renault-Nissan, Ford by providing local supply to their India and Asia Pacific facilities.

Commenting on this, Rodolfo De Benedetti, chairman, Sogefi Group, said “The growing importance of Indian automotive market gives this country a central position in CIR and Sogefi Group’s global strategy. Pune is an ideal location for our new plant because the city provides a strong infrastructure and a rich talent pool of skilled workforce in the automotive sector.”

He added, “ As Europe is experiencing major slowdown, we are now focusing on Asian and Latin American markets. Currently we produce 30 per cent of out put outside Europe but it will be 50 per cent by 2015 due to European market conditions. But we are not exporting any product from India and they are made only for Indian OEMs.”

Sogefi Group's 65 per cent of business comes from passenger car segment.

Emanuele Bosio, CEO, Sogefi Group, said “Our new plant represents a key milestone in Sogefi Group’s long-term vision of investing in fast growing markets and aligning our manufacturing footprint with the needs of our global customer base.”