Bengaluru-based precision components maker for automotive and non-automotive sectors Sansera Engineering Ltd is s stepping up its global expansion strategy with a foray into East Asia, particularly Japan, as it seeks to engage a new set of automotive customers and diversify into high-value segments.
In a significant move, the company has signed a joint venture agreement with Japan’s Nichidai Corporation to manufacture precision forged and machined components in aluminium and steel.
The proposed venture will focus on differential assemblies, compressors, driveline systems, and other advanced automotive components that are not currently part of Sansera’s product portfolio. The products will cater to both Indian and international markets.
The JV entity, Nichidai Sansera Pvt. Ltd., has been incorporated as a subsidiary of Sansera Engineering. Sansera will invest ₹50 crore over the next couple of years to acquire a 60% stake in the venture, Executive Director and Group CEO B.R. Preetham said during an earnings call.
The partnership combines Nichidai’s five decades of expertise in manufacturing dies, precision components and filters, developed across its Japan and Thailand operations, with Sansera’s strong manufacturing base and customer relationships in India’s automotive sector.
“Our JV with Nichidai is aligned with our vision to expand into high-value, technology-agnostic automotive component segments and strengthen our position as a comprehensive solutions provider to the global automotive industry,” Preetham said.
The JV will primarily focus on cold and warm forging, areas where Sansera’s presence has been limited so far.
According to ADS Division CEO Hari Krishnan, cold and warm forging processes enable the production of high-precision, near net-shape components used in transmission systems such as differential drivelines. These products typically offer superior margin profiles compared to the company’s existing portfolio.
Alongside its international expansion, Sansera has inaugurated a new manufacturing facility in Pantnagar, Uttarakhand, dedicated to domestic two-wheeler OEMs. The plant will manufacture crankshafts and crankshaft assemblies. The company already operates a large facility in Pantnagar catering mainly to the two-wheeler segment.
The newly acquired second plant in Pantnagar, spread across about two lakh sq. ft. with two manufacturing sheds, has been upgraded over the past eight to nine months.
The company has installed two crankshaft production lines and plans to scale up operations with higher automation, IoT integration, data capture and analytics capabilities.
Notably, the facility will be predominantly operated by women employees. Currently, nearly 60% of the workforce comprises women, with plans to increase this to 100% over time.
Sansera is also expanding into xEV and non-automotive segments, including energy and emerging technologies. The company has secured an order worth approximately ₹70 crore per annum from the energy division of North America’s largest EV producer, with execution set to begin next financial year.
Additionally, it is exploring opportunities in humanoids, autonomous vehicles and aerospace, where demand for cold and warm forged high-precision components is rising.
With Karnataka plants nearing capacity and new facilities under development in Bidadi, Pantnagar and Bengaluru, Sansera expects sustained growth.
The company aims to grow at least 10% faster than overall market growth and has earmarked capital expenditure of ₹375–400 crore this year, with a similar outlay planned for the next fiscal.