PHOTO: PTI

FOR A STRONG BASE: The Duke of York, Prince Andrew, being presented with a memento by Angad Paul, Chief Executive Officer of Caparo plc, in Chennai, on Friday. The occasion was the unveiling of a plaque to launch the Caparo group's proposed industrial complex in Sriperumbudur.

CHENNAI: Caparo India's project for manufacturing auto components in Tamil Nadu fits into the U.K.'s strategy of encouraging investments in both directions, the Duke of York, Prince Andrew, said on Friday.

Unveiling a plaque here, marking the launch of the Caparo group's facility at Sriperumbudur, about 25 km to the west of Chennai, he commended the group for having recognised not just the market in India but also the country's potential as a base for production and product design.

Caparo India is putting up a research and development-tooling centre and auto components manufacturing facility on a 120-acre complex at a cost of over Rs. 400 crore. This is its single largest investment in the country.

One-stop-shop

Angad Paul, Chief Executive Officer, Caparo plc, said the U.K.-based Group was looking at Tamil Nadu as a major centre for its development. The facility would be a one-stop-shop for solutions to the growing base of automotive companies in the region.

Caparo also "wants to leap frog its own capabilities," using the talents and skilled human resource available here. It would be an opportunity to showcase Caparo's capability and be an example to U.K. companies wanting to come to India, he said.

"The group intends to build facilities that are as relevant to the rest of the world as to India," Mr. Paul said.

Managing director and chief executive officer of Caparo India Sunil Pahilajani said the facility would have units for stampings, aluminium foundry, forgings and an R and D Centre-tool room. Eventually, Caparo plans to bring the specialised braking system solutions of Caparo AP in the U.K.

Production would commence in April 2007 in the stamping facility, followed soon by other facilities. The forgings unit would commence by 2007 end, with a 6,000-tonne press that would cater to the entire automotive industry.

The company was holding 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 employ about 700 people.

Solutions provider

Addressing a press meet, Mr. Paul said Caparo aimed to be a systems and solutions provider for the automotive industry. The total investments in Tamil Nadu, including the second phase, would be more than Rs. 1,000 crore, making it Caparo's largest site in the world.

Noting that the group would like to make the Sriperumbedur facility a blueprint for Caparo elsewhere, he was appreciative of the support provided by Tamil Nadu Government for the project.

"The State Government could not have been more positive in terms of getting things done [for the project] ... they knew our requirements," he declared. "We are here in Tamil Nadu because we believe in the workforce and progress of the region." The Sriperumbudur facility would employ 1,000 people and the numbers could increase as the production volumes rose.

Expecting the Indian market for auto components to grow significantly in the years ahead, Mr. Paul said the Sriperumbudur facility was likely to attract more automobile manufacturers to Tamil Nadu.

He also hoped to start a technical university in Tamil Nadu. For this the group had initiated discussions with the State Government.

Printer friendly page  
Send this article to Friends by E-Mail