Caparo plans to ramp up India operations

The UK-based Caparo group is eyeing a 10-fold jump in its turnover from India, which includes a foray into new economy sectors.

The development assumes significance as the Swraj Paul-promoted group had till date been active in old economy sectors such as steel, automotive and engineering.

For the first time, the group is now looking at entering financial services through venture capital and the high-skilled artificial intelligence domain.

Swraj Paul said the group had recently set up a venture capital, Core Capital, in the UK and depending on the success would take it to India. "We would look at any profitable project from any sector" he said.

The group's artificial intelligence business in Sweden had turned profitable and Paul said, eventually, the base would shifted to India to cash in on advantages on cost and manpower fronts.

At present, the group's turnover from Indian operations was at Rs 150 crore. Paul said the group would achieve a turnover of Rs 400-500 crore by the end of the financial year and Rs 1,500 crore, over three years.

Caparo's target of Rs 1,500 crore would be through the organic route. Paul said, "We would achieve the target by building plants in India."

The projects, being implemented in India, include expansion of Caparo's existing facility and a new plant to produce long chassis members for commercial vehicles in Madhya Pradesh, automotive pressings and assembly plant in Greater Noida, and metal fasteners for automotive and commercial vehicle industries in Rajasthan.

The group already has a facility at Gurgaon, which manufactures automotive body panels on tandem press line. A second plant at Halol is involved in hemming of automotive door and bonnet closure parts for GM India.

The third plant at Bawal manufactures skin panels for two-wheelers, automotive inner parts and robotic welding of brake levers.

The group is also considering a steel tube unit in India. Paul said, "We are looking at it." Investments in India also include a conference and leisure complex in Greater Noida.