Caparo to Supply Parts for Nano
NRI industrialist Lord Swraj Paul owned - Caparo Group is setting up a manufacturing facility in Singur to supply Auto components to the Tata Nano. Caparo group CEO Angad Paul said the components supplied would comprise 12-15% of the just-unveiled Nano.
Caparo is investing Rs. 120 crore to set up this facility inside the campus Tata Motors has acquired for its Rs. 1 lakh car project in Singur. The facility would be spread over 35 acres bought from Tata Motors. It would house a steel processing unit and an aluminium foundry.
Mr. Paul said investment in the factory will go up as the Tatas expand production of the Nano. "The initial plan is to make 250,000 cars a year. The Nano has a huge domestic market and if it were to be exported sales figures could be astounding. We will ramp up our capacity in line with Tata production figures," he said.
Asked whether the Nano project would offer enough margins to component suppliers, Mr. Paul said if there was no profit, he would not go into a project.
On the Caparo Group's business plans for India, Mr. Paul said he expected to achieve a turnover of Rs, 5,000 - 6,000 crore by 2010 and Rs. 10,000 - 12,000 crore in the next seven-10 years. The group has 32 existing or planned manufacturing facilities across the country.
Source: The Economic Times
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