Magna sets up ladder frame plant in Pune

Canadian auto components giant Magna International has set up a ladder frame manufacturing facility in Pune with an investment of about ₹250 crore.

The unit has been set up for Mahindra & Mahindra, which will use the frames for its refreshed Scorpio and all future platforms.

Mahindra, on its part, is investing about ₹130 crore for tooling of the ladder frames at the facility.

A ladder frame is the normal chassis of a smaller truck, such as a sports utility vehicle, and is used as it provides a higher beam resistance.

“This is a brand new line manufacturing facility, and Magna International would supply the frames exclusively to Mahindra & Mahindra.

“This is our first large business with Magna International,” Hemant Sikka, Chief Purchase Officer (Automotive and Farm Sectors), at Mahindra, told Business Line .

Magna has set up the facility, which has already begun manufacturing 225 ladder frames a month, through a wholly-owned unit Cosma International.

“The capacity can be scaled up if necessary,” Sikka added.

When contacted, a Magna spokesperson confirmed that the company has set up a ladder frame facility, but declined to disclose the investment or projected volume figures.

The company has been expanding its engineering and manufacturing footprint globally.

In India, Magna International is setting up two new facilities in Sanand, Gujarat, which on commissioning will increase its total number of manufacturing locations in the country to 11.

Separately, Magna entered into a 50:50 joint venture (JV) with Tata AutoComp Systems to develop seats for commercial vehicles in India. The JV, to be headquartered in Pune, will develop seats for commercial vehicle manufacturers and buses.