Sona Koyo close to French acquisition

Sona Koyo Steering Systems Ltd is close to announcing an acquisition in France. The company has informed BSE that a meeting of its board of directors will be held on Friday, October 15, to consider and decide on making an investment in an auto component joint venture company in France for manufacturing steering systems.

Without divulging the name of the joint venture, Sona Group chairman Surinder Kapur said that the proposed joint venture in France would be in the same business Sona Koyo Steering.

Kapur said, "As per mandatory requirements we have intimated the plans to invest in this joint venture to BSE. Due to corporate governance requirements, I cannot divulge any more information until the Board meets on Friday."

A formal announcement will be made at a news conference on Friday, the same day it is also due to declare its second quarter financial results.

Sona, which uses technology from Japan's Koyo Seiko Co, has a nearly 45 per cent share of the Indian market for car and utility vehicle steering systems. Maruti Udyog Ltd, India's biggest car maker, owns 7.85 per cent of Sona.

The company is targeting export income to cross 45 per cent of its total sales by 2009-10 and the proposed joint venture in France is a step in that direction.

At present exports constitute only two per cent of its top line.