German car parts maker ZF Friedrichshafen AG today said it has signed a letter of intent (LoI) with the Telangana government for setting up a new technical centre here.
The LoI was signed between state IT and Industries & Commerce minster K T Rama Rao and ZF senior executives, a statement from the German company said.
The new technology centre, which will be dedicated to electronics-embedded software and mechanical engineering, will support ZF's global development teams while enabling the company to accelerate local product development supporting ZF automotive and non-automotive operations and customers in India, it said.
"The technology centre will be fully operational by January 1, 2017, and is expected to have a workforce of 2,500 engineers by 2020, including the 1,000 engineers who are currently working with ZF," it said.
The company also has an existing team of mechanical engineers based in Pune and Coimbatore to address the local market requirements of automotive and non-automotive original equipment manufacturers (OEMs).
Welcoming the new investment by ZF, Rama Rao said, "We look at this investment by ZF as an ecosystem builder for Hyderabad. We unveiled our IT Policy-2016... Along with sectoral policies earlier this year and our government will be working with ZF to evolve a comprehensive Engineering Services Policy for aggressively promoting the sector."
Mamatha Chamarthi, Senior Vice-President and Executive Lead for the new India Technology Centre (ITC), said India offers a huge, technologically competent talent pool which aligns with the growing demand from customers for advanced software, electronics and mechanical engineering.
"Access to this diverse talent base coupled with a progressive local government and robust infrastructure has made Hyderabad favourable for setting up the first technology centre for ZF in India," Chamarthi said.
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