To invest $25 million in the joint-venture over the next three years
Chennai, October 28, 2021 – SSS Springs, India’s biggest spring manufacturer, on Wednesday, announced the setting up of an advanced seating systems manufacturing facility in Chennai, jointly with Daewon, world’s leading automobile seating manufacturer from South Korea.
The multi-million-dollar investment plant at Sriperumbudur in Chennai, spread over 30,000 square feet, in the first phase, has bagged a significant order from a global transportation major, to supply seating systems for India’s metro projects.
Commenting on the joint venture, Satish Machani, Chairman and Managing Director, SSS Springs, said, “SSS Springs has been focused on indigenisation in key industries and sectors in the spirit of the larger AatmaNirbhar Bharat mission. The JV with Daewon is to anchor our entry into seat modules for the high-growth metro and railway sector in India, and automotive thereafter. In the next 10 years, India will be building the largest number of metros in the world, with over 50 cities from the current 10 cities with Metro. The JV will be addressing a market valued at 1.6 billion dollars plus per annum. The SSS Springs – Daewon JV marks the consummation of several years of partnering in the auto-components space. Both partners expect to invest in excess of $25 million in phases in our Chennai plant and R&D unit that will develop India focused products.”
On the setting up of India-JV, Daewon Corp Director, Herbert Kim, said, “Daewon has been very positive on the India story for a long period of time. We were looking to translate our global leadership in the seat’s module business across rail & automotive segments to a sustainable long-term strategy for India. The JV will bring the latest technologies in terms of light weighting, design, ergonomics, safety and high-speed to the Indian market.”
SSS Springs has multiple manufacturing plants in Chennai. The joint venture is Daewon’s debut into India’s seat module manufacturing space. The new JV is a 60:40 equity partnership between SSS Springs and Daewon.
India’s transportation sector is expected to witness strong growth over the next few years with upcoming Metro & Light-Rail Transit, railways, bus, and passenger-cars projects. The country’s metro railway network covers 800 km, and is expected to add another 1,100 km distance in the next decade. An additional 1,000 km of metro connectivity has been proposed. By 2047, India is expected to have metro connectivity across 100 cities stretching 5,000 km, the largest in the world, surpassing China. The joint-venture is expected to cater to the strong business opportunity, resulting from this boom. The advanced seating systems will be a key requirement in the near future. Seating systems will also be needed by luxury bus manufacturers, carmakers. Besides serving the domestic market, the JV is expected to offer products for exports in the coming years.
