Sharda Motor’s new Maharashtra facility launches June 23 with ₹150cr investment, making exhaust/suspension parts for OEMs & EVs.
Key Details of SMIL’s New Manufacturing Facility
✔ Location: Chakan, Maharashtra (Auto Hub near Pune)
✔ Commercial Production Start: June 23, 2025
✔ Regulatory Clearance: Factory license granted June 20 by Maharashtra Industrial Safety Directorate
✔ Strategic Focus: Enhanced capacity for exhaust systems, suspension components, and EV-ready parts
Plant Significance & Capabilities
1. Production Expansion
- Adds 20-25% capacity growth to SMIL’s existing operations
- Will manufacture:
- Advanced exhaust systems (BS6 Phase 2 compliant)
- Lightweight suspension components
- EV structural parts for upcoming electric vehicles
2. Technological Edge
⚙ Advanced Manufacturing Systems:
- CNC pipe bending for precision exhaust components
- PLC-controlled robotic welding cells
- Industry 4.0 integration with IoT-enabled quality monitoring
🏭 Quality Certifications:
- IATF 16949:2016 (Automotive Quality Management)
- ISO 14001 (Environmental Management)
3. Market Impact
🚗 OEM Partnerships:
- Supplies to Maruti, Tata, Mahindra, Hyundai
- Potential new contracts with EV makers like Tata Punch EV, M&M XUV.e
🌍 Export Potential:
- 15% production earmarked for global auto markets
- Targets European aftermarket with emission-compliant parts
Strategic Growth Context
Financial Implications
💰 Investment: ~₹150 crore (phase 1)
📈 Revenue Impact: Expected to contribute ₹300-400 crore annually at full capacity
Operational Synergies
- Complements existing plants in:
- Nashik (Exhaust systems hub)
- Haridwar (North India supply chain anchor)
Employment Generation
👷 500+ new jobs created (technical & skilled labor)
🎓 Training Programs:
- Partnership with NSDC for welder/fitter certification
- In-house EV component manufacturing training
Industry Outlook
Auto Component Market Trends
📊 Sector Growth: 8-10% CAGR expected (2025-30)
🔋 EV Transition: 30% of SMIL’s Chakan output to be EV-compatible by 2027
Competitive Advantage
🛠️ Vertical Integration:
- In-house tooling and prototyping
- Reduced dependence on imports
⏱ Proximity Benefits:
- Within 50km radius of Pune’s auto OEM cluster
- Access to JNPT port for exports
Management Commentary
“The Chakan plant represents our commitment to ‘Make in India’ with global standards. Its strategic location and advanced capabilities position us for the industry’s electric transition.”
— SMIL Spokesperson
Implementation Timeline
📅 June 2025: Phase 1 production begins (mechanical components)
⚡ Q4 2025: EV parts line commissioning
📈 2026: Full capacity utilization (3-shift operations)