Pune: Southco is strengthening India’s role in its global manufacturing and operations strategy, with the company planning to double the size of its Ranjangaon manufacturing facility and exploring the establishment of a new facility in the Middle East, most likely in Dubai, by mid-2027.
India has become a strategic manufacturing and global capability hub for Southco, which has expanded its manufacturing presence in the country since establishing its first facility in Ranjangaon in 2008.
The company subsequently expanded the facility and, in 2026, rebranded its India shared service centre as a Global Capability Centre, reflecting the growing capabilities being developed in the country.
Southco to Double Ranjangaon Facility
Thomas Mehler, President, Southco, said, “Southco is currently in the process of expanding its Ranjangaon facility again and plans to double its size. The company said the expansion will add further capacity to its India operations as its business grows.”
The company also indicated that the existing site has scope for further expansion using the available land. It estimates that the facility could potentially be increased by around 30% before the next stage of expansion would involve setting up another facility.
“Rather than building large-scale mega factories, Southco follows a model of establishing smaller, manageable manufacturing facilities. Once a facility reaches capacity, the company considers opening another facility to support further growth,” Mehler added.
India Becomes Strategic Manufacturing Hub
Southco has increasingly positioned India as an important manufacturing base. The company entered the Indian market in 2005 with a sales operation and established its first manufacturing facility in Ranjangaon in 2008.
The company’s India expansion has included both organic growth and acquisitions. In 2022, Southco acquired Darshana, one of its largest local competitors. The acquisition added two facilities and around 750 employees in India, along with 30 distributors and direct sales personnel.
The acquisition strengthened Southco’s presence in industrial applications, including canopies and enclosures, while complementing its existing presence in transportation-related segments such as railways, highways, construction equipment and automotive.
The company also opened an office in India in 2024 and rebranded it as a Global Capability Centre in 2026. The company said the move was deliberate because the capabilities developed in India were providing greater value on a global basis.
More Manufacturing to Be Localised in India
Southco plans to further localise manufacturing in India as its business grows. Mehler said higher volumes of individual products can create the scale required to invest in machinery and localise production.
The company’s manufacturing strategy is based on making locally what is consumed locally. According to Southco, more than 90% of what it manufactures in India is consumed in India.
The company has also shifted production to India based on customer requirements. Mehler cited examples including Volvo, for which it moved production of a latch and hinge used for an electric vehicle’s front trunk from the UK to India. He also said General Motors moved production of a magnesium-cast component from China to India.
Middle East Facility
As part of its wider expansion, Southco has shifted management of its Middle East operations from the UK to India. The company said India is a natural base for the region because of the interaction and business links between India and the Middle East.
Southco is exploring opening a facility in the Middle East, most likely in Dubai, by the middle of 2027. The location has not yet been finalised.
The planned Middle East expansion could also provide an opportunity for the company to develop a dual-brand strategy involving Southco and Darshana, following the 2022 acquisition.
Long-Term India Expansion Strategy
The company’s India strategy reflects its broader approach of investing ahead of anticipated market demand. Southco said it intends to continue investing for the long term and expand its manufacturing footprint as business volumes increase.
With the planned doubling of its Ranjangaon facility, further localisation of manufacturing and the potential addition of another facility, India is becoming an increasingly important part of Southco’s global manufacturing network.
The company’s expansion in India is also being supported by the development of its Global Capability Centre, giving the country a broader role beyond manufacturing and allowing capabilities developed in India to contribute to Southco’s global operations.
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