Synergies Castings to set up a ₹650 cr greenfield plant in Visakhapatnam

Aluminium alloy wheel manufacturer Synergies Castings has announced plans to set up a ₹650-crore greenfield alloy wheel making facility near the port city of Visakapatnam.

The company has signed a memorandum of understanding (MoU) with the Andhra Pradesh government earlier this year to establish an aluminium casting and speciality alloy wheel manufacturing facility.

The new greenfield facility, with an annual production capacity of 2.4 million units per annum, has been bench marked at 18 inch wheel size. It is expected to have sophisticated casting, machining, painting facilities with embedded digital manufacturing technologies.

This agreement sets the stage for building one of the largest single location alloy wheel manufacturing projects, with a facility to expand this to 5 million wheels per annum in multiple phases.

Shekhar Movva, President, Synergies Castings Limited, said: “As customer requirements become exceedingly more stringent, it is important to scale up and tech-up to remain competitive.The Project cost of $100 million will be financed by the existing shareholders, internal accruals and bank debt.”

“While we have evaluated several manufacturing locations in the country, we believe Vizag, and the terms of engagement with Andhra Pradesh offer the best opportunity in the competitive alloy wheels market,” he said.

Together with its ancillaries, this venture will provide more than 2000+ skilled jobs in the region.

This marks another step forward in the strategic growth of Synergies. Together with the ongoing expansion at the existing location, the new greenfield plant being built in Oman, and this proposed new greenfield, the company is on-course to achieving a 6-million-wheel per annum capacity by 2022-23.

Synergies unit located Vizag Special Economic Zone has been supplying to leading Original Equipment Manufacturers in India and overseas for more than 17 years. It supplies to major automotive companies, including General Motors-USA, Ford, Chrysler-USA, Tata Motors, Toyota amongst others.

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