Facility will be one-stop-shop for solutions: Angad Paul
Caparo Indiais putting up an R&D-tooling centre, auto components manufacturing facility in Sriperumbudur.
The companyaims to be a systems and solutions provider for the automotive industry.
Chennai, Nov. 3
The Caparo Group, the UK-based auto components manufacturer, is looking at Tamil Nadu as a major centre for its development, said Mr Angad Paul, Chief Executive Officer of Caparo Plc. Addressing the launch function of Caparo India's industrial complex coming up at Sriperumbudur near Chennai, he said the facility would be a one-stop-shop for solutions to the growing base of automotive companies in the region.
Caparo also "wants to leapfrog its own capabilities" using talent and skilled human resource available here, he said.
Caparo India is putting up an R&D-tooling centre and auto components manufacturing facility spread over 120 acre at a cost of over Rs 400 crore. It would be an opportunity to showcase Caparo's capability and be an example to UK companies to come to India, he pointed out. "The group intends to build facilities that are as relevant to the rest of the world as India," Mr Paul added.
Caparo group chose Tamil Nadu, as it was a State helpful to industries and an example to the country as to how one should encourage industries.
Prince Andrew, the Duke of York, who unveiled a plaque to mark the launch of Caparo's facility, said the project fits into UK's strategy of encouraging investments in both directions. Caparo group has recognised not just the market in India but that it can be a base for production and product design. Caparo's project is an example of how UK and India can work together, he said.
Mr Sunil Pahilajani, Managing Director and Chief Executive Officer of Caparo India, said that it would set up facilities for stampings, aluminium foundry, forgings and an R&D-tooling centre at the Sriperumbudur facility.
Production would commence in April 2007 in the stamping facility and followed soon by the other facilities. Forgings unit would commence by the end of 2007 with a 6,000-tonne press that would cater to the entire automotive industry.
The company is in discussions with the State Government for an additional 100 acres for cold rolling and galvanised tubes, tubular parts for automotive and aerospace, automotive braking systems, fasteners and composite materials, and testing. These would involve investments of over Rs 300 crore and would employ about 700 people.
Later, addressing a press conference, Mr Paul said that Caparo aims to be a systems and solutions provider for the automotive industry. The total investments in Tamil Nadu, including the second phase would be about Rs 1,000 crore making it Caparo's largest site in the world. "I would like this to be a blueprint for Caparo to replicate," he said.
He also hoped to start a technical university and is in discussions with the Tamil Nadu Government. It would be a `practical university' drawing on its manufacturing facilities.