Synergies to Set up Largest Alloy Plant in Vizag
Synergies Castings Limited, India’s leading aluminium alloy wheel manufacturer announced the signing of an MOU with the Government of Andhra Pradesh in the presence of the Chief Minister Mr. Chandrababu Naidu; to establish a major greenfield aluminium casting and specialty alloy wheel manufacturing facility in Visakhapatnam, Andhra Pradesh, INDIA.
This new greenfield facility with an annual production capacity of 2.4 million wheels per year, benchmarked at 18″ wheel size will have the most sophisticated casting, machining, painting facilities with embedded digital manufacturing technologies; to offer its’ Customers the best possible product at the most competitive prices. The Project cost of $100 million will be financed by the existing shareholders, accruals and bank debt.
With the auto industry poised to see a major growth in the coming years, and the increased penetration of alloy wheels in India, SYNERGIES is gearing up to meet the steep demand by increasing production capacity manifold and fulfilling the needs of its veritable customer base.
This agreement with the state of Andhra Pradesh sets the stage for building one of the largest single location alloy wheel manufacturing projects, with intent to expand this to 5 million wheels in multiple phases. Mr. Shekhar Movva, President, commented, “As customer requirements become exceedingly more stringent, and consequent need to invest in substantial capex for sophisticated production, testing and development facilities, it is important to scale up and tech-up to remain competitive. While we have evaluated several manufacturing location options in the country, we believe that Vizag, and the terms of engagement with the state of Andhra Pradesh offers the best opportunity to be the most competitive manufacturer of Alloy wheels in the country. Further, with the GST regime on, there is no penalty to moving goods across geographies and thus large-scale manufacturing makes sense.” This initiative is in sync with the Government’s push to make Andhra Pradesh an automobile hub of the future. Together with its ancillaries, this venture will provide more than 2000+ skilled jobs in the region.