Published On:May 14 2018
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Synergies to invest $100m in alloy wheel unit in Vizag.
Synergies Castings Limited, a premier aluminium alloy wheel manufacturer in the country, will invest $100 million on a greenfield aluminium casting and specialty alloy wheel manufacturing facility in Visakhapatnam.
The facility will produce 2.4 million wheels per year benchmarked at 18” wheel size with sophisticated casting, machining and painting facilities with embedded digital manufacturing technologies. The capital for the project will be raised from existing shareholders, accruals and bank debt.
After signing an MoU with the State Government during the CII Partnership Summit this year, the company management has set in motion the process for establishing the new unit. Together with the ongoing expansion at the existing location, the new plant being built in Oman, and the unit proposed in the city, the company is expecting to become a 6-million-wheel capacity company by 2022-23.
“As customers’ requirements become more stringent and consequent need to invest in substantial capital expenditure (Capex) for sophisticated production, testing and development facilities, it is important to scale up to remain competitive. While we have evaluated several manufacturing location options in the country, we believe that Vizag offers the best opportunity,” says Shekhar Movva, president of Synergies Castings Limited.
Investment in auto sector
Auto industry is poised to see a major growth in the coming years with increased penetration of alloy wheels in India. Andhra Pradesh is emerging as a major auto hub in the country. The State has attracted an investment of $3.7 billion (about ₹25,000 crore) in the auto sector.
The State now boasts of presence of auto companies like Korea’s Kia Motors, Japanese auto major Isuzu, two-wheeler major Hero Motocorp, Apollo Tyres, Bharat Forge and Brakes India.