Caparo to invest Rs 5 cr in Indore auto cluster

The UK-based Caparo group is planning to invest Rs 5 crore in the tool room of the Pithampur Auto Cluster Private Ltd (PACPL). The company is in talks with the MP government in this regard.

It was recently reported that the group would invest Rs 100 crore in a new tubings facility in Pithampur.

The Pithampur auto cluster, which, according to a senior government official, is likely to take off later this year, is being developed under the "Industrial Infrastructure Upgrade Scheme (IIUS)" of the Centre. The Centre will give a grant of Rs 50 crore for this.

The Union government has given approval to the Rs 75.93-crore auto cluster in Pithampur, an industrial village which was once known as the Detroit of Asia. The proposed cluster envisages the creation of a tool room, a technical service centre, a hazardous waste disposal site, a modern industrial training institute, and a business centre for small and medium enterprises.

"The Indian subsidiary of the group, Caparo Engineers India Pvt Ltd, will invest Rs 5 crore in the tool room. The company will generate 100 jobs through this investment," a government source said, adding, "The firm has sought support from the state government".

According to a senior government official, after initial hitches, the state's auto industry has contributed Rs 5 crore to the project. A special purpose vehicle for governing and managing the facilities for the PACPL has been formed.

"Industrialists of the state have contributed Rs 5 crore, while the central government has released Rs 28 crore so far. The cluster will be a world-class one and will take off in October or November this year," said O P Rawat, principal secretary, department of industries and commercial tax.

The MP chapter of the Confederation of Indian Industry and the MP government have joined hands for the development of the auto cluster.

A CII report submitted to the state government said the cluster was expected to achieve a turnover of over Rs 10,000 crore, from the present Rs 2,424.96 crore. "Exports may go up to Rs 1,000 crore, from the existing Rs 88 crore," the report said.

The Caparo group has a sound base in the Pithampur auto sector with a steel stamping unit.

The Indian arm of the group is also setting up a long members unit for auto industry with an investment of Rs 40 crore and Rs 25 crore in an iron foundry and forging unit in Dewas.