PRESS RELEASE
SOGEFI (CIR GROUP): WITH TWO NEW PLANTS AIMS TO QUADRUPLE REVENUES IN INDIA IN THE NEXT 5 YEARS
New suspension components plant opened in Pune and filter
system factory in Bangalore doubled in size
The objective is to reach at least 5% of the group's total
revenues in India in the next five years up from 1.2% in
2011. The initiative is part of Sogefi's strategy of growth
in emerging markets
Pune (India), Milan, July 4 2012 - Sogefi, the automotive
components company of the Cir group, is consolidating its
presence in India with the launch of a new suspension
components plant in the Pune area and with the doubling in
size of the factory producing filter systems in the Bangalore
area.
More specifically, through its 58% controlled subsidiary
Allevard IAI (in which the Indian partner Imperial Auto has a
42% interest), the group has today inaugurated a plant of 12
thousand square metres at Chakan in the Pune region for the
production of stabilizer bars and torsion bars - two
essential parts of suspension systems - for cars and
commercial vehicles. The Chief Executive of the Cir group and
Chairman of Sogefi Rodolfo De Benedetti, the Chief Executive
of Sogefi Emanuele Bosio and the Managing Director of
Allevard IAI, Aman Mehtani, were among those present at the
event.
The new plant will initially be supplying Tata, Mahindra,
FIAT and Piaggio. However in the near future production is
scheduled to start in order to supply the Indian plants and
those in the Asia-Pacific region of other global clients of
Sogefi such as General Motors, Renault-Nissan and Ford. At
the same time, in the Bangalore area the group has doubled
the capacity of its filter system plant which is the result
of a joint venture with its local partner (holding 40%)
MNR.
India has one of the vehicle markets with the highest levels
of growth in the world. According to Oica figures
(Organisation Internationale des Constructeurs
d'Automobiles), in the last eleven years, between
2000 and 2011, local production has increased almost
fivefold, with a growth rate that is second only to
that of China. In 2011, with 3.9 million vehicles, India was
the sixth world market in terms of production. Sogefi entered
India at the end of 2008 thanks to a joint venture with MNR
in the filter business. In 2011 the group's revenues in India
stood at 1.2% of the total. The objective with the new plants
up and running is to reach at least 5% in the next five
years.
"Strengthening our industrial position with the completion of
these two plants - said Rodolfo De Benedetti, Chief Executive
of Cir and Chairman of Sogefi - will enable us to speed up
our growth process in a car market with one of the highest
rates of development in the world. This initiative is in line
with Sogefi's strategy of increasing its presence in markets
outside Europe while maintaining its traditional leadership
in Europe. Over the next three years the group aims to
generate around 50% of its total revenues outside
Europe".
"Thanks to this investment - commented Emanuele Bosio, Chief
Executive of Sogefi - we are continuing the process of
aligning our industrial capacity to the needs of our clients.
The consolidation of our presence in India and the new
investments we plan to make in China will make Sogefi an
increasingly global supplier able to provide manufacturers
with the most advanced technologies in the main markets they
operate in".
The group's total investment in India amounts to
approximately 10 million euro. Overall the Sogefi group's
production capacity in India consists of three plants: the
Pune plant, the Bangalore plant and a third plant producing
engine air-cooling systems at Gurgaon, which came with the
acquisition of Systèmes Moteurs, completed in the second half
of 2011. The group has over 500 employees in India. At global
level the Sogefi group has 44 plants in 16 countries (6 in
South America, 3 in North America, 29 in Europe, 1 in Africa,
5 in Asia).
***
Contacts:
Sogefi Investor Relations
Giancarlo Coppa
tel.: +39 02 46750218 www.sogefigroup.com
CIR Group Communication Department
Salvatore Ricco Francesca Sagramoso tel.: +39 02 722701
e-mail: infostampa@cirgroup.com www.cirgroup.com
***
This press release can also be consulted on the following website: http://www.sogefigroup.com/it/area-stampa/index.html
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