The Hindu Business Line : Sona Koyo plans aluminium die casting, forging unit

New Delhi, July 18 In an attempt to expand the scope of its business, Sona Koyo Steering Systems Ltd is looking to set up an aluminium die casting and forging unit. “We are examining setting up of an aluminum die casting and forging unit to export components to Europe,” said Mr Surinder Kapur, Chairman and Managing Director, Sona Group, to Business Line.

At present, the company sources its aluminum forging requirements and then uses it for making components. However, the company is now looking at indigenously supporting its forging and die casting requirements.

Sona Koyo Steering Systems’ board also gave clearance on Wednesday for external commercial borrowings worth $50 million for which the company has tied up with ICICI Bank.

The company plans to use this to fund its expansion plans over the next two years. “Last fiscal, our capex stood at Rs 66 crore and this year we have raised it to Rs 130 crore,” said Mr Kapur.

The company on Wednesday reported a profit after tax at Rs 7.98 crore, compared to Rs 3.68 crore for the corresponding quarter of the previous year.

It recorded a 31 per cent increase in its net sales for the first quarter ended June 2007 at Rs 185.27 crore as against Rs 141.02 crore in the corresponding quarter last year.

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