SSS Springs, a leading manufacturer of springs, has partnered with Daewon, a leading car seat manufacturer based in South Korea, to establish an advanced seating systems manufacturing facility in Sriperumbudur near Chennai under a 60:40 joint venture.
SSS Springs-Daewon JV is the culmination of several years of partnerships in the automotive components field. Both partners expect to invest more than $25 million in phases in the new plant and in an R&D unit that will develop products focused on India.
The joint venture with Daewon aims to solidify our entry into seat units for India’s high-growth metro and rail sector, and automobiles thereafter. In the next 10 years, India will build the largest number of metros in the world with more than 50 cities, up from the current 10 metro cities. “The joint venture will address a market of $1.6 billion+ annually,” said Satish Machani, Chairman and Managing Director of SSS Springs.
Sitting on the subway
The new plant, which will spread over an area of more than 30,000 square feet in the first phase, has secured a huge order from a major global carrier to supply seating systems for metro projects in India. SSS Springs based in Bengaluru already operates several manufacturing plants in Chennai.
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“Daewon has been very positive about the India story for a long period of time. We were looking forward to translating our global leadership in the modular seat business across the railway and automobile sectors into a sustainable long-term strategy for India,” said Herbert Kim, Director of Daewon Corp.
India’s subway network covers 800 km and is expected to add another 1,100 km in the next decade. An additional 1,000 kilometers of metro connection has been proposed. By 2047, India is expected to have a metro connection across 100 cities spanning 5,000 km, the largest in the world, surpassing China.
The joint venture is expected to cater to strong business opportunities in the metro rail sector. Advanced seating systems will be a major demand in the near future. Seating systems will be needed by luxury bus manufacturers and automakers. Besides serving the domestic market, the joint venture is expected to offer products for export in the coming years.