Satrac eyes $100mn expansion with 4 new truck body units

Chennai: Satrac Engineering, a leading trailer and truck body manufacturer and a wholly owned subsidiary of Japan's Kyokuto Kaihatsu Kogyo Co, is planning a $100 million investment over the next seven years to set up four new truck body manufacturing facilities across India, even as it ramps up its newly commissioned flagship plant near Chennai. The company inaugurated its new Rs 250-crore greenfield factory near Chennai. With this, Satrac now operates two manufacturing facilities in Chennai and Bengaluru, with a combined peak production capacity of over 1,500 units per month.
M C Bantwal, managing director of the company, said it will invest an additional Rs 70 crore –Rs 80 crore over the next 24 months to transform it into a fully automated production unit. The plant, which will focus on trailers, tippers, and specialised cargo bodies, is expected to reach a production capacity of 800 units per month in the first phase, scaling up to 1,200 units per month as automation is completed. The Bengaluru-headquartered company plans to establish new truck body building units in Jamshedpur, Gandhidham (Gujarat), Pune, and a replacement facility in Bengaluru. Each facility is expected to involve an investment of roughly Rs 250 crore. The company intends to set up a new plant every 24 months, with locations chosen to be close to truck OEM hubs and major logistics markets. Around 30%–35% of production from the Chennai plant, which will be its flagship unit with an export focus, will go to Daimler India Commercial Vehicles, which runs a truck manufacturing unit nearby, while the remaining 65%–70% will serve customers across South and East India. "We are targeting markets such as Tamil Nadu and Odisha, which are large markets," he said. The Chennai plant will play a key role in driving the company's growth, helping it scale up revenues from about Rs 550 crore currently to Rs 1,000 crore over the next two years. Over the longer term, Satrac is targeting revenue of Rs 3,000 crore within a decade, supported by expanded capacity and deeper engagement with OEMs and fleet operators. Its customers include all leading truck OEMs and large logistics operators. Its product mix consists of 35% tippers, 35% trailers, and the remaining 30% cargo bodies and bulkers.