OBSC Perfection Limited has acquired land in Sanand, Gujarat to establish a new manufacturing unit dedicated to machining operations. The project follows the receipt of a nomination from an Indian auto components manufacturer requiring the company to set up a facility near the customer’s plant.
The expansion follows the receipt of a nomination letter from a domestic auto components manufacturer. Under this nomination, the company will establish a manufacturing facility in proximity to the customer’s plant and manufacture machined piston rods.
The nomination is expected to generate production offtake of approximately INR 490 million per year in the first phase. The company has previously supplied components to the same customer and said the arrangement supports the customer’s regional expansion plans.
“The Company has taken this strategic decision considering that Sanand has emerged as a major auto hub of India. Establishing operations in the region will provide Company with strategic locational advantage, enabling it to secure new customers while simultaneously deepening business relationship with some of our existing customers that have presence in the region,” the company said in a statement.
The company said in a stock exchange filing that it has purchased land measuring 3,959 square metres in the GIDC-II industrial area in Sanand, Gujarat. The land is valued at INR 28.5 million and will be used to develop a new machining facility, with Phase one operations expected to begin by the end of the fourth quarter of FY27.
OBSC Perfection stated that it has paid an initial advance for the land and is currently completing regulatory procedures required to transfer the property into the company’s name. Construction activity will begin once the transfer process is completed.
The Sanand facility will be in addition to a previously announced land acquisition in Maharashtra for the development of an integrated manufacturing facility.
OBSC Perfection Limited, formerly known as OBSC Perfection Private Limited, manufactures precision metal components and supplies machined parts to automotive industry customers.
