The Hindu : Business : Suprajit's venture with Carclo

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Thursday, Dec 02, 2004

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Business

Suprajit's venture with Carclo

By Our Staff Reporter

BANGALORE, DEC. 1. Suprajit Engineering, maker of special cables for the automotive sector, will set up a state-of-the art manufacturing facility, a 50:50 joint venture with Carclo Plc, a U.K. based maker of technical plastics and special wire products, senior executives from both companies told reporters here today.

The focus of the joint venture was to outsource existing business of CTP Gills Cables, a Carclo Company, from their U.K. facility to India, and leverage that cost arbitrage to seek more global customers, said Ian Williamson, Chief Executive of Carclo, and Ajith Kumar Rai, Managing Director of Suprajit.

"After assessing the global manufacturing scenario, we have found India an advantageous base. India is also emerging as a global hub for auto component outsourcing. Carclo realises the competitive advantages of lower cost, consistent global delivery and developmental abilities of Suprajit Engineering. Added to this, the continued pressure from global majors on `cost down' requests, makes it obvious for us to find alternate manufacturing bases like India to continue to remain competitive in the business,'' Mr. Williamson said.

Mr. Rai said, "Having established ourselves as a dominant player for the Indian market, the joint venture will give fillip to our global ambitions. With world-class capacities in place, it is now time for us to develop a global delivery model. The upgradation of systems as well as CTP Gills established European model of manufacturing would give us valuable insight into the demands of global majors.''

The project would be located at Doddaballapur, 50 kilometres from Bangalore. It is expected that within the first three years of commercial production, the project would do business of about 5 million pounds, a company release said.

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