"Caparo has a fantastic chance to build on its good relations in India with Tata Motors," its CEO Angad Paul has told the Financial Times.
Paul's company already has a deal to supply components for Tata Motors' ambitious Rs one lakh car Nano, which company Chairman Ratan Tata believes will dramatically change the car maker's market position, reach and visibility.
Tata, in a letter to Tata Motors' shareholders in the company's annual report yesterday, said that the acquisition of British auto brands Jaguar and Land Rover (JLR) would add global scale, profits and visibility to the company, enabling it to take its place in the global auto industry as a credible international auto company.
Many of Caparo's new operations, both in the UK and India, are focusing on higher-value, designed areas of engineering, particularly in automotive.
An example is Caparo Vehicle Technologies, a new 35-strong business that is examining new concepts in vehicle design including use of new materials such as bamboo and novel kinds of carbon fibre-based components.
The Basingstoke company created Caparo's own high-tech demonstration racing car, which competed in this year's Le Mans 24-hour race