Caparo will build the body structures for the Tata Nano. Selected inner structural panels will be pressed and assembled by Caparo at a new facility in Singur, adjacent to the Tata Nano manufacturing plant. The company will supply 60 per cent of these assemblies, with the rest being manufactured in-house by Tata Motors itself.
“We are rapidly becoming the supplier of choice for quality auto components. We are today at zero ppm levels and supply to probably every automotive manufacturer in India. We are very excited about our growth in India. We are probably doing more components for the Tata Nano than any other component manufacturer. We are also working with Tata Motors on the World Truck project. We are not just a parts company, we position ourselves as a design and engineering company”, said Mr. Angad Paul, CEO, Caparo Group.
To meet Tata Motors’ ambitious cost targets, Caparo has installed a new semi automated production line with zero fault forward quality control systems. “The body technology is relatively conventional, but the manufacturing technology is the result of very sophisticated analysis to ensure high-quality, low cost production. We completed this extremely quickly to meet our customer deadline, with start of production just six months after the contract was confirmed. We are growing fast and are very keen on continuously investing in India. We plan to do at least a billion dollars of sales here in the next 7-10 years,” Mr. Angad Paul added.
“We are rapidly becoming the supplier of choice for quality auto components. We are today at zero ppm levels and supply to probably every automotive manufacturer in India. We are very excited about our growth in India. We are probably doing more components for the Tata Nano than any other component manufacturer. We are also working with Tata Motors on the World Truck project. We are not just a parts company, we position ourselves as a design and engineering company”, said Mr. Angad Paul, CEO, Caparo Group.
To meet Tata Motors’ ambitious cost targets, Caparo has installed a new semi automated production line with zero fault forward quality control systems. “The body technology is relatively conventional, but the manufacturing technology is the result of very sophisticated analysis to ensure high-quality, low cost production. We completed this extremely quickly to meet our customer deadline, with start of production just six months after the contract was confirmed. We are growing fast and are very keen on continuously investing in India. We plan to do at least a billion dollars of sales here in the next 7-10 years,” Mr. Angad Paul added.
Tatas chose Caparo for this substantial contract because of the firm’s success with a similar contract to supply the Suzuki Maruti 800, and for its reputation for very high quality. “We have been delivering to plants in India at zero ppm for three years,” says Caparo India country head Sunil Pahilajani. “Quality at this level is a tremendous complement to our people.”
Caparo also supplies Indian plants for Ashok Leyland, Eicher Motors, JCB, John Deere and Hero Honda, as well as most manufacturers of two and three wheeled vehicles. The company was the first supplier to be trusted by Honda in Greater Noida to supply critical structural body components manufactured from high-tensile steel.Caparo Vehicle Products specialises in precision-formed and light-weight metal products, including stampings, forgings, machinings, aluminium castings and tubing, as well as a wide range of complementary products and services such as carbon composites, fasteners and module build. Caparo AP Braking supplies a wide range of base braking components and systems.
In India Caparo currently operates on 16 sites and plans to open a further 14, predominantly supplying components to the automotive industry, but increasingly to the aerospace and maritime sectors. The group currently employs 4,000 people in the country.
Caparo recently inaugurated a manufacturing facility in Greater Noida at an investment of Rs 83 crore to supply critical structural body components manufactured from high-tensile steel.. This new facility employs 200 people. This would be scaled up to 300 by the end of this year. The unit serves auto companies such as Honda and construction equipment maker JCB for the domestic market as well as for exports to global auto companies.
Chennai facility
In Chennai, the Caparo Group has established a state of the art complex built on 120 acres of land with an initial investment of £120 million. The complex houses a stamping unit, research and development centre & tool room, an aluminium foundry and a forging unit. The facilities will generate employment for approximately 1000 people and revenue of £125 million by the year 2010. The complex will be involved in the manufacture of components predominantly to the automotive industry.
Mr. Angad Paul said: “This is just one phase of the project, plans are in place to develop another unit at Oragadam, in Chennai with an initial investment of £36million. The unit will house manufacturing facilities for tubular parts, automotive braking systems, fasteners, composite materials and testing”.
Caparo India is also planning to set up a manufacturing unit to cater to TAFE Limited (Tractors and Farm Equipment Ltd) at Nilakkotai, Dindigul district. The group also plans to set up a technical education institution in Tamil Nadu, following the success of the Caparo PTU School of Excellence that has been launched in Jalandhar.
It is undertaking a feasibility study and planning to set up a power transmission unit in Pithampur, braking systems and iron foundry in Pune and a luxury buses and special vehicle unit in Chennai.
