Caparo to invest about Rs 850cr in India

Looking to expand in the Indian auto component space, Lord Swraj Paul-promoted Caparo Group is likely to invest about Rs 850 crore, which includes setting up of greenfield plants and acquisitions. The company is also aims to double its turnover in to Rs 1,000 crore in the next fiscal.

"In order to expand our business in India, we are planning to invest 10 crore pounds (about Rs 850 crore) and double our sales to about Rs 1000 crore," Caparo Group Director Technology and Business Development Surya Kumar Singh said.

He said the investments would be utilised on greenfield projects and acquisitions. He, however, declined to comment on the details of acquisitions.

The company is in the process of establishing new auto spare part manufacturing plants besides the newly commissioned plant in Chennai.

It is also planning to raise its headcount to 5000 from the current levels of 1000 in the next three years, he added.

"Now the major amount of Caparo group will be focussed in India. The company will supply auto spare parts to major auto makers like Ford, Tata Motors, Honda, Bajaj Auto, Eicher and Ashok Leyland," Singh said.

Asked about the financing of the expansions, he said it was not an issue as the group had a strong credit rating from global agencies.

On international acquisition plans Singh declined to comment, a though industry sources said Caparo is looking for opportunities in Poland, US, UK and China.