Subros to enhance localisation efforts

Subros has entered into Joint Venture with Yamamoto Electric Company, Japan, for the localisation of blower motors in India. This JV is executed and production is likely to start from October 2019.

This effort is likely to minimize the risk arising from foreign currency fluctuation as localized sourcing would reduce imports by nearly 20 per cent. Currently, the import content is 38 per cent of the company's raw material cost. So, this effort would also help in reducing the raw material cost hence improving the operational performance of the company.

Subros is the only integrated manufacturer for Auto Air Conditioning systems and Thermal Products in in India. The company is also the country's largest auto air conditioning manufacturer. It manufactures compressor, condenser, heat exchanger and other AC components.

Cheering the news, the stock of Subros Limited jumped nearly 2 per cent and made an intraday high of Rs. 285.75 per share on the BSE on Monday.