Caparo group to set up Rs 400cr engg complex

UK-based Caparo group, founded by NRI industrialist Lord Swaraj Paul, will be investing about Rs 400 crore for an over 120 acre engineering complex in Sriperumbudur near Chennai.

Prince Andrew, The Duke of York, officially launched the facility at a function here. The complex, comprising stamping facility, research and development centre, tool room, aluminium foundry and steel forgings, is expected to have 1,000 employees. However, the company expects to hire more when demand and volume will increase.

While the stamping facility is expected to start production by April 2007, the other facilities are expected to be operational by the first quarter of 2008. The group has also sought an additional 100 acre from the state for its phase-II expansion, which will involve an investment of Rs 300 crore to put up five more facilities, which will enable the company to cater to a range of applications.

Addressing a press conference here, Angad Paul, chief executive of the Caparo group, said it was the group's dream of having manufacturing process in one location alongside of research and development facility. The complex has been planned to provide a total component engineering solutions rather than a component manufacturing unit.

He added that the engineering complex was an important facility for the group as it is expected to provide a blueprint for the group to replicate the same in other parts of the world.

The facility will cater to truck and car manufacturers, both in India and abroad. However, the company expects volumes in India to go up significantly in the immediate future. While the company aims to achieve a turnover of Rs 400 crore in the first full year of production, it expects to ramp up the turnover to Rs 1,000 crore in a short period. About inorganic growth, he said the company was open to acquisitions. Paul also said the group's strategy would be to have presence across four regions and to build regional capabilities. While it has already established presence in northern and western regions, it would look at eastern region in the future.

However, he said, Chennai would be the hub for group's toolings research and development. Paul also said the group was also planning to set up a technical university in Chennai. The group has thus far invested about Rs 925 crore in industrial projects and Rs 310 crore in societal projects in India. It has 2,100 employees and expects to end 2007 with a turnover of Rs 750 crore.