Axles India, part of the South-India based TVS Group , is investing INR160 million (€2.86 million) in a new plant to supply axle housings to Dana Corporation in the US.
Dana is TVS Group’s joint venture partner in Axles India.
Dana has agreed to buy 50,000 axle housings a year from the company. The plant will be established in Sriperumbudur, near Chennai, and is expected to be operational by October 2005.
The total value of the annual order is expected to be around INR400 million (€7.14 million).
Axles India came into the black last year with net profits of INR35.9 million, which helped it wipe out accumulated losses of INR34.5 million. The company makes axle housings for commercial vehicles.