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Chakan plant to make starter motors, alternators

Our Bureau

Pune, July 29

The Rs 832-crore NK Minda Group has announced a joint venture agreement with Valeo Electrical Systems of France. The venture is for setting up a new plant at Chakan in Pune to manufacture starter motors and alternators.

According to Mr Nirmal K. Minda, Managing Director, NK Minda Group, the new entity will be christened Valeo Minda Electrical Systems India Pvt Ltd(VMESPL). The JV agreement envisages that 66.7 per cent equity will be held by Valeo and 33.3 per cent equity with NK Minda Group.

The new company would be investing around Rs 100 to 120 crore in Pune. He noted that the investment would be spread over four years and around 10 per cent of the total amount is earmarked for setting up research and development lab at the new facility.

The commercial production is likely to commence at Chakan in March 2008, he said. “We were looking for opportunities to enter into new segments in auto components in line with our core competency of manufacturing quality electrical components. Our foray into starter motors and alternators is part of our commitment to bring forth value added propositions and quality electrical components to our OEM customers,” he noted.

It may be noted that the total OEM market for cars and MUVs is currently slated to be 1.5 million starters and 1.5 million alternators, respectively. This is growing at a rate of around nine per cent.

He said VMESPL is targeting revenues of Rs 275 crore (€50 million) by the end of 2010. It will be focusing on manufacturing starter motors and alternators for passenger cars initially and after consolidation in the sector will look at HCV, LCV and two-three wheeler segments going forward, he added.

More Stories on : Alliances & Joint Ventures | Automobile Components

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