Caparo Group Sets Up Fastener Plant in India

Jason Sandefur

The UK-based Caparo Group is investing RUP 3 billion (US$68 million) in a stamping, foundry and forging facility in southern India, The Hindu reports.
Caparo”s vehicle products division will reportedly make fasteners, composite materials, tubular products for automotive and aerospace and automotive braking systems at the factory.
“We are confident that with the knowledge base and talent pool available here, it will become a hub for aerospace components and manufacturing as it already is for automotives,” stated Caparo CEO Angad Paul. “We believe we can attract aerospace OEMs and bring them here.”
The company signed a memorandum of understanding with the government of Tamil Nadu for the plant, which will employ about 850 workers.
Caparo”s Indian operations currently employ 2,000 directly, with a further 2,000 employed indirectly, according to The Hindu.
“In a 10 to 15-year horizon, I would like to see our aerospace business equal auto, because it”s higher in value,” Paul stated. “The rate of growth of aerospace will outstrip auto.”
Caparo”s existing aerospace clients include Rolls Royce and Pratt & Whitney, but the group has already started dealing with Boeing through its sub-suppliers and plans to supply Airbus soon.
The Caparo group has already invested another RUP 3 billion (US$68m) in an auto component manufacturing facility in nearby Sriperumbudur, which will start production in April. When running at full capacity, Paul expects annual sales worth RUP 10 billion (US$226m) from each plant.
Globally, Caparo sales top EUR 1 billion (US$1.31 billion), including EUR 310 million (US$407.6m) in North America. According to its website, the group employs more than 4,200 worldwide, including 500 in North America. Web: caparo.co.uk \ �2007 FastenerNews.com