The Hindu Business Line : Rane Group set to build unit at Singur

Kolkata, Feb. 18 Auto components manufacturer Rane Group will set up a components unit at Singur to extend support to the Tata Nano car plant there. The first phase of the production will be spread over five acres and entail an investment of Rs 20 crore, according to Mr L. Ganesh, Chairman of the Rane Group of Companies.

Addressing a news conference here shortly after the ground-breaking ceremony at the plant site on Monday, Mr Ganesh said construction work would begin immediately and the plant would be operational in six months. The plant will supply rack and pinion steering gears, lower control arms, steering columns and seat belts for the Tata Nano car plant.

The unit will be equipped to cater to the requirements of 3,50,000 Nano cars per annum, will provide direct employment to 380 people and generate a revenue of Rs 75 crore annually.

Demand sketch

Mr Ganesh said the Rane Group supplies auto components to companies manufacturing passenger cars, multi-utility vehicles, light commercial vehicles, medium and heavy commercial vehicles, farm tractors, three-wheelers and two-wheelers. Tata Motors accounts for 25 per cent of the group’s sales.

At a later stage, the Singur plant may be expanded to manufacture components required by Tata Motors’ Jamshedpur facility. At present, requirements at the Jamshedpur plant is sourced from Rane’s manufacturing facilities in South India, Mr Ganesh said.

According to him, the Rane Group recorded a turnover of Rs 1,365 crore in 2006-07, including exports of Rs 150 crore. In the current fiscal, it hopes to generate a turnover of Rs 1,500 crore, including exports of Rs 175 crore. The group exports auto components to the US, Europe, Far East and Japan.

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