Schaffler Group to invest Euro 110 mn by 2010

Bearings and automotive components major Schaffler Group is planning an investment of Euro 110 million in three of its Indian units by the years 2010.

The Euro 8.3 billion German conglomerate has three units in India "" FAG Precision Limited, in Vadodara, Gujarat, LUK in Hosur, Tamil Nadu, and INA Bearings India Pvt Ltd, at Navlakhumbre, near Pune, in Maharashtra.

Maria-Elisabeth Schaffler, head of the Schaffler Group and partner of the group's supervisory board, told mediapersons on Friday that the investments were meant to increase the production capacities of the Indian operations as a response to the market demand.

"India is important for us and we see a potential to expand business in this market," she said.

The group also announced the inauguration of INA Bearings plant at Navlakhumbhre with an installed capacity to make 40 million pieces annually. The plant will make needle cages, drawn cup bearings, clutch release bearings, water pump bearings as well as engine components such as roller finger follower.

"We intend to invest Euro 40 million in the plant by 2010, a major chunk of which is already invested," said Biswaroop Dhar, managing director of the plant. Dhar said the group also planned to set up an engineering and testing centre in the plant about the middle of the year.

The Schaffler Group owns 51 per cent stake in FAG Precision where it manufactures roller bearings.

"We will expand the capacities at the FAG plant by investing Euro 60 million as we see a significant rise in the demand for the company's products thanks to a fast expanding automobiles sector in India," said Hans-Jurgen Goslar, executive vice-president of the group.

He added that there would be capacity addition at LUK as well and an investment of Euro 12 million had been planned. LUK makes automobile clutches and other components.

Goslar said it was the company's policy to make in a country what is specifically needed by that market. He clarified that there was no possibility of India becoming a base for the group's global sourcing.