To meet the expanding order book, Sansera Engineering Ltd, which manufactures precision-forged and machined components for the auto and non-auto sectors, plans to incur expenditure of 300 crore in FY24, up from 244 crore in FY23.

“To support our growth in the non-ICE segments, we invested ₹244 crore as capex in 2022-23, for technological upgradation and adding production lines. We expect to spend a similar amount in the current financial year,” S Sekhar Vasan, Chairman & Managing Director, said in the company’s latest annual report.  

“We also initiated the construction of a new facility for the machining of parts at our existing plant in Bidadi. This brownfield expansion project is expected to be completed by the end of this year and will enhance our presence in the tech-agnostic and xEV segment, including aluminium components,” he added.  

This facility has been planned to house all the aluminium forged and machine product categories of components and the plan is in line with the company’s increased long-term sales contribution target of 20 per cent from xEV and tech-agnostic products.

Vikas Goel, Chief Financial Officer of the company, told investors during the Q1 FY24 earnings call that the capex for FY24 is estimated to be in the vicinity of ₹300 crore. “A majority of this capex will be in the areas of non-auto and Auto-ICE categories in order to deliver upon our growing order book,” he added.