- Sona Comstar approves INR 622 million capex to expand gear production capacity
- Installed capacity to reach 68.2 million units by FY 2027–28
Sona Comstar gear capacity expansion India has been initiated following the company’s approval of a capital expenditure plan worth INR 622 million on March 20. The investment targets its driveline segment and is aligned with anticipated growth in customer demand. The initiative reflects a strategic move by Sona BLW Precision Forgings Ltd. to strengthen production readiness while maintaining operational efficiency across its manufacturing footprint in India.
Capex Plan and Capacity Increase
The approved investment will increase installed gear production capacity from 64.1 million units to 68.2 million units. The additional 4.1 million units are scheduled for commissioning by FY 2027–28. The company intends to fund this expansion through a combination of internal accruals and debt, ensuring financial flexibility while supporting long-term growth objectives in driveline systems.
Operational Utilisation and Demand Outlook
Current utilisation levels stand at approximately 80%, based on performance during the first nine months of FY 2025–26. This indicates a stable demand environment and justifies incremental capacity addition. The expansion is positioned as a proactive step to accommodate future order inflows and maintain supply reliability for automotive customers.
Strategic Manufacturing Alignment
The capacity addition supports ongoing efforts to optimize production in the regular course of business. By scaling output capabilities, the company aims to align its manufacturing infrastructure with evolving market needs while ensuring consistent delivery performance and operational scalability.
This development underscores a measured expansion approach, balancing capacity growth with demand visibility and financial discipline in the driveline components segment.
Click above to visit the official source.