Caparo Group to Expand in India

Jason Sandefur

London-based Caparo Group will add three auto component manufacturing plants in India as part of a major operational expansion in Asia. The factories are expected to generate revenue of Rs 10 billion (US$221.8 million) in the next three years. The move includes setting up a plant in Haryana to manufacture fasteners for the automotive and general industries by September 2005. When completed, the fastener facility will generate as much as Rs 500 million per year.
Caparo owns Armstrong Fastening Technologies, which manufactures bolts, screws, studs, nuts and helicoil inserts, and has annual sales of about $83 million, or 12.2% of overall Caparo Group revenue in 2003. Armstrong is headquartered in West Midlands, England. Web: armfast.com
With India poised to emerge as a leading manufacturer and exporter of cars in the next five years, Caparo Group is looking to become a leading exporter of automobile components from India to other parts of the world.
According to Research & Markets, the Indian automotive industry, valued at $6.8 billion, has grown at a strong pace over the last few years, with a 15% annual increase projected until 2012.
Auto experts say India is the only market rivaling China for both market size and growth potential. With estimated cost advantages of 30%, Indian producers have begun to export components to the global market.
In the 1990s economic liberalization allowed foreign automakers such as Hyundai, Ford, Toyota and GM to set up bases in India. The carmakers persuaded their overseas components suppliers to set up in India, prompting a boom in domestic manufacturing. Delphi followed after General Motors opened its plant in the state of Gujarat in 1995, and Visteon followed Ford in 1998.
Caparo Group employs more than 3,000 workers around the world, including 545 in North America. Web: caparo.co.uk \ �2004 FastenerNews.com