Valeo India Pvt Ltd formally inaugurated a Rs 100 crore factory to make temperature control products for passenger cars.
The subsidiary of Euro 12 billion Valeo of France, a multinational autocomponents manufacturer, has set up the factory at Sanand, a fast growing automobile manufacturing hub about 30 km south of the city.
Jacques Ashenbroich, CEO, Valeo, said the thermal power train products factory which will make radiators, charge air controllers and fan systems is Valeo's sixth factory in India and fills a gap in Valeo's product range on offer. This is a globally significant market and production hub which like China is expected to grow rapidly in the coming years.
Dominic Savio, Business Head and General Manager THS, Valeo India, said the factory will supply components to Ford which is setting up a car plant in the vicinity. Nearly 60 per cent of its capacity is committed to Ford which is expected to start production in a couple of months.
Valeo India will also approach other OEMs including Suzuki which has started work on a greenfield plant at Sanand. Exports will also help achieve full capacity at the plant which has a furnace to churn out a million units a year The Rs 100 crore investment does not include land cost but just the building and equipment. There is scope for expansion at the 15-acre site, he said.