The Gurgaon-based, Rs 288-crore Sona Koyo Steering Systems' acquisition of a 21 per cent stake in Fuji Autotech (FA), France for $6.15 million makes it the sixth significant investment overseas by an Indian auto component maker during the last one year. For Sona Koyo chairman Surinder Kapur, this is a big step. "This (acquisition) will significantly boost our exports and allow us to ride on FA's marketing network to access their existing clients," said an enthused Kapur.

And he's not the only one with such aspirations. Acquisitions, whole or part, seem to be an increasing trend in the Indian auto component industry (see 'Expanding Overseas'). This is one way Indian companies can gain access to the state-of-the-art technology and ready international clientele as most suppliers are tied to car or assembly manufacturers.

Amtek Auto made a couple of overseas acquisitions, while Bharat Forge and Sundram bought a firm each. Sundram has also set up a 100 per cent subsidiary in China.

FA is the fourth largest supplier of steering columns in Europe and is likely to see its sales touching $90 million in 2004. Sona Koyo is looking at supplying 10 million (approximately $11 million) worth of components to FA by 2008. The move fits well with the company's plans to foray into commercial vehicle steering systems next year, as this is an area of strength for FA. An amount of Rs 125 crore has been earmarked for this venture.