Hindustan Composites to set up auto parts unit in Bengal

Raghu Modi controlled light engineering and auto component outfit Hindustan Composites Ltd is planning to set up an auto component unit in West Bengal.

The company has already initiated discussion with tier 1 auto component manufacturers of Tata Motors for supplying a few components as tier 2 manufacturer for the small car project in the state.

According to sources, Hindustan Composites is planning break lining and clutch facing unit near the proposed Tata Motor plant at Singur in Hooghly district of West Bengal.

"The company has already started discussion with few tier 1 component manufacturer of Tata Motors in this regard,"said sources.

It is learnt that Hindustan Composites is planning to tie up with an outfit which is likely to be entrusted with for the break assembly of small car.

When contacted, the director of Hindustan Composites and the son of Raghu Modi, Varun Modi told Business Standard that the group is contemplating to set up a new unit for break lining and clutch facing in a new location and West Bengal is one of the preferred location for that.

"We have not yet finalised anything. But West Bengal is in our mind following the announcement of small car project," he said.

However, he was not ready to disclose the investment. "It is too early too comment on that," he added. Incidentally, the company currently have two plants in Paithan and Bhandara in Maharashtra.

Commenting on the future plan of the outfit, Modi said in view of emerging business opportunities the company has focused on the growth of its OEM and export business and has provided a major thrust in this direction.

"We participated in the Auto Expo 2006 at Pragati Maidan in January 2006. The response from both domestic and international customers was encouraging," he added.

Modi pointed out that that the company is hopeful of achieving better results in the coming years with continued investment in modern equipment's and would focus further on R & D.