Financial Daily from THE HINDU group of publications
Saturday, May 06, 2006
Financial Daily from THE HINDU group of publications Saturday, May 06, 2006 |
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Corporate
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New Projects Magna Intl keen on setting up base in India M. Ramesh
The company, the world's fourth largest auto components manufacturer, is present in India through three entities.
Chennai , May 5 Magna International Inc, a $23-billion US-based company that produces a range of auto components, fully-built cars and involved in design and engineering work for the automotive industry, is keen on setting up a manufacturing base in India. At present, the company, the world's fourth largest auto components manufacturer, is present in India through three entities. One is a joint venture with Lumax Automotive for manufacturing mirrors. The two other companies, Vehma Engineering Solutions (India) Pvt Ltd and Magna Steyr India Pvt Ltd, are into providing design and engineering services to both Indian and foreign companies. "In the next 12-18 months, we hope to announce our second manufacturing decision," Mr Prasen Agali, Executive Director - South Asia, told Business Line on Wednesday. Incidentally, Magna has an option to raise its stake in the joint venture with Lumax to majority in the next three years.
Component purchase
In addition, Magna is also interested in purchasing components from India. With that in mind, the company met some 60 companies of the Automotive Component Manufacturers Association (ACMA) in Chennai on Thursday. Representatives of ACMA member-companies "interacted with top purchasing officers of Magna's various divisions," Mr Agali said, adding that some initial orders had been placed on suppliers. He did not want to disclose the names of Indian sellers till the products were fully validated and firm orders placed.
Acquisitions
Mr Agali hinted that Magna was interested in acquisitions in India too. "Magna does not look at India as a sourcing location, but also growing automotive market in which it would like to participate and offer solutions to Indian OEMs," he said, adding that the solutions "may be delivered from JV plants or greenfield sites depending upon customer requirements."
More Stories on : New Projects | Automobile Components
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