SSS Springs, one of India’s largest spring manufacturers, along with South Korea’s leading automobile seating manufacturer Daewon, is to set up an advanced seating systems manufacturing plant in Chennai. The new JV is a 60:40 equity partnership between SSS Springs and Daewon.
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. The partners plan to invest around $25 million (Rs 185 crore) over the next 3 years towards the JV.
Satish Machani, chairman and MD, 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 more than $1.6 billion dollars (Rs 11,842 crore) 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 (Rs 185 crore) in phases in our Chennai plant and R&D unit that will develop India focused products.”
Herbert Kim, Corp Director, Daewon 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 and 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.”
The joint venture is Daewon’s debut into India’s seat module manufacturing space. The partnership is expected to cater to the strong business opportunity in the metro rail segment. The advanced seating systems will be a key requirement in the near future. The partners believe that seating systems will also be needed by luxury bus manufacturers and carmakers. Besides serving the domestic market, the JV is expected to offer products for exports in the coming years.