The Hindu Business Line : Caparo group to set up Rs 300-cr plant near Chennai

New Facility
Tubular parts, braking systems, fasteners and composite material and testing facilities will come up at the new facility.
The project would make Caparo an engineering solutions provider to the automotive industry.

MR ANGAD PAUL

Chennai March 8 The Caparo group of UK today signed a Memorandum of Understanding with the Government of Tamil Nadu to set up a Rs 300-crore plant at Oragadam, near Chennai. The plant will produce a variety of components mainly for the automotive sector and aerospace, Caparo group's CEO, Mr Angad Paul, told a press conference here today.

Tubular parts, braking systems, fasteners and composite material and testing facilities will come up at the new facility. This is the group's second investment in Tamil Nadu.

In August 2006 Caparo started work on a consolidated 120-acre site at Chennai. The Rs 400-crore facility include an aluminium foundry, specialising in pressure die castings, a steel forge, an automotive stamping plant and a research and development centre incorporating a tool and die design and manufacturing plant. The facilities are to be commissioned in stages, with the stamping and R&D facilities due to open in April 2007. The foundry is due to commence production in July 2007 and the forge in the first quarter of 2008.

The forge, a multi-year investment for Caparo, will possess both forging and machining facilities. The plant will manufacture products such as camshafts, crankshafts and connecting rods for the automotive industry. The installed press capability will range from 1,000 tonnes to 6,300 tonnes with consideration being given to the installation of a 12,000 tonnes press. UK based Bridge Aluminium, part of the Caparo Aluminium grouping, is currently liaising with the foundry developers to incorporate a gravity die cell.

"The aim of the project in Chennai is to make Caparo an engineering solutions provider to the automotive industry," says a background paper provided by the group. A further 100 acres of land has been requested in the vicinity of the Chennai complex to develop additional tube, fastening and composite materials facilities.

Mr Paul said that the Sriperumbudur unit would achieve a turnover of Rs 1,000 crore by 2009 and the Oradagam unit, a couple of years later.

The current investments were only "initial investments" and the group would put in more money as and when required by customers, he said.

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