Auto parts firm Stanadyne to invest Rs 200 crore for second plant

US-based auto parts maker Stanadyne is exploring a few locations in western and northern India to establish its second plant in the country. For this, the company plans an investment of Rs 200 crore, said its chief executive officer (CEO) John Pinson.

Stanadyne is planning to triple its sales revenue from its India operations to about Rs 1,100 crore by 2027, Pinson told Business Standard.

The company manufactures fuel pumps and fuel injectors for agricultural and commercial vehicles. It sells them to automobile companies such as Bajaj Auto, Greaves, TAFE and Simpson.

Stanadyne’s only plant in India is in Chennai and it employs about 700 people.

The revenue coming from India accounts for about 30 per cent of the company’s total global revenue, Pinson said. About 60 per cent of Stanadyne’s total global revenues come from the US.

Out of its total India revenues, about 75 per cent come from exports and only about 25 per cent from domestic consumption. The Chennai plant currently sends products to companies in Italy, the US, Mexico, China and Turkey.

Stanadyne expects domestic and export market revenues from India to be 50 per cent each by 2027 as domestic demand for its products is rising, he said.

“This (expected domestic growth) is due to the fact that Stanadyne India is gearing up to launch new products for the Indian emission regulations. These products will start adding to the sales revenue in a phased manner.

We will also benefit due to the OEM (original equipment manufacturer) volume growth expected in India. The combined effect will be that the domestic share will contribute 50 per cent,” he said.

Real driving emission (RDE) norms, under which auto companies have to install a self-diagnostic device in their models to monitor emissions real-time, will be implemented in India from April this year. 

Auto companies will have to incur significant costs to update their models to install these devices.

Stanadyne currently sells its products to companies such as Ashok Leyland, Cooper, John Deere, JCB, Kirloskar, Simpson, TAFE, Cummins, Bajaj Auto, Continental and Greaves.