Auto Component manufacturer, Sona BLW is now all set to be aggressive after spending some time consolidating its businesses across the world. The company has moved its operations from America to India and Germany and is now looking to invest around Rs 600 crore in next three years. Sona BLW recently unveiled the brand’s new identity and logo, the company steered away from Sona Koyo and acquired Mitsubishi Materials’ entire stake in Sona BLW Precision Forgings that has an annual turnover of around INR 2,400 crore.
After a couple of years of consolidation, under the leadership of Sunjay Kapur, the company has grown progressively and command 11 percent of market share in differential gears. The company is already supplying components for EVs to car makers and is now ready for the next phase of growth. Sola BLW’s currently has about 85% of its business here in India and remaining in Germany and Hungary. It recently opened two new plants in Gurgaon one for electric axels and other for machining. It is also investing in a new plant in Pune.
At the recently concluded Auto Components Expo 2018, we had the chance to interview Sunjay Kapoor, CEO, Sona BLW Group India and had the chance to discuss his company’s future and his take on electric mobility, R&D in EVs and his company’s long-term plan.
Q: As India discusses EVs, what’s your take as a leading component manufacturer, is India ready for e-mobility.
Sunjay Kapur: Electrification will happen, I can’t determine when electrification will happen but it will first take place in two and three-wheelers followed by buses. It’s about building infrastructure quickly to support electrification. Companies are working on it right now, more delegations are coming to India than ever before. Majority of start-ups are looking at e-mobility, so yes move to EVs is inevitable.
Q: What kind of R&D is required and is being done by Sona BLW Group to support and supply components for EVs?
Sunjay Kapur: In terms of R&D, we have done a lot of it and have already started supplying to a lot of electric car manufacturers and therefore we are confident that our products exist in its current form. In fact, in high-end electric cars, we have two differentials and it has helped in increasing the volumes of our business. The electric axle that we have built that goes into three-wheelers. We import the motor and controller currently, we have tested our products on larger vehicles in LCV segment and it works. We are not supplying it that segment but we have tested it in those vehicles.
Companies have to invest in R&D. Any company that believes that electrification will not happen in my opinion is wrong, 100 percent electrification will happen, I don’t know how fast it will happen but it will happen soon.
Q: What about scalability in EVs, only once scalability goes up, EVs will be cheaper, how soon will that take place?
In terms of scalability will be driven by OEMs which will be driven by customer demands. What we see in any industry today is driven by customer demand, scalability happens automatically when there is demand. The industry used to import earlier and now we indigenize and that happens because of scale. With volumes going up, automakers will have to outsource components supply.
Q: Your presence in Europe (Germany and Hungary) help your overall EV business?
Whether in India or Germany Sona BLW has the same R&D and manufacturing capabilities so we are truly like a global company. In terms of production efficiency, Germany is better than India. But knowledge in R&D both Germany and India are equal.
