 "Sona eyes opportunities in defence components")
Leading auto component maker Sona Group is looking at setting up a dedicated unit to cater to the growing demand for equipment and mchinery by the defence sector. At present, conglomerates like Tata, Reliance and Mahindra are major players in the industry.
“A dedicated manufacturing set up for defence sector is a high possibility, not under the listed entity (Sona Koyo Steering) but within the group. We have products that can be used in tanks and other defence vehicles”, said Sunjay Kapur, chairman of the Sona Group, well known for its steering systems where it is the largest domestic player. “Our group forging products will be a low hanging fruit. Steering can also be applied to a defence vehicle. Gears can also be used”.
Kapur said the defence sector is looking for an organised supply chain. “As a natural step they look at the automotive industry. We are in conversation with a lot of agencies to explore this business”. The National Democratic Alliance government has focused on indigenous production of defence equipments under the ‘Make in India’ campaign. It has granted manufacturing permits to a number of private players.
The current components of auto industry do not have a ready application in defence. “We are closest to them in manufacturing system and processes. We understand manufacturing of quality products at a competitive cost and therefore a typical component person would be in a good position to set shops for the defence industry”, said Kapur.
Sona Group, Kapur said, is working towards doubling its revenue to Rs 10,000 crore in next five years. The group will look at new business areas of defence, aerospace and railways in addition to expanding the auto component business to grow revenues.
