Vizag based entrepreneur Shekhar Movva belonging to Synergies Castings Ltd (SCL) will invest $140 million in a world-class aluminium alloy wheels firm in Bahrain.
The SCL will invest the amount in two phases with the majority being held by Synergies. The joint venture with the Sovereign Wealth Fund ‘Mumtalakat,’ an investment arm of Kingdom of Bahrain, was signed in December last. The world-class plant with a capacity of 2.2 million wheels or equivalent of 30,000 tonne per year will be located within the precincts of ALBA.
It will deploy state-of-art technology and service the global OEM market with particular emphasis on the US and Europe, Mr. Shekhar, president of the SCL, told, adding that their first overseas unit would be operational in 24 months.
SCL is the leading manufacturer of aluminium alloy wheels in India with its production unit located in the Visakhapatnam Export Procession Zone (now named VSEZ),Duvvada . The unit started in 1996 with an investment of Rs.106 crore produces 0.8 million units of which 75 per cent is sent to the US and the Europe.
Mr. Shekhar said they specialise in producing extremely high precision, quality and high-end alloy wheel for various global vehicle manufacturers including General Motors, Ford, Chrysler, Tata Motors, Toyota, Fiat, Nissan, Volkswagen, Honda, Audi and Mahindra & Mahindra.
On the reasons for investment in Bahrain, he said it was because of business environment and the focus to encourage the kingdom to become manufacturing hub with growing aluminium downstream sector in the region.