Auto-component firms invested Rs 3,000 cr in Sanand last year

Mitsui Kinzoku Components Ltd deals in development, manufacture and sale of functional components for automobiles.

Written by Avinash Nair | Ahmedabad | Published: June 15, 2014 3:58:03 am

Six years after Gujarat managed to woo the Rs 2,000-crore Tata Nano to Sanand, then a nondescript village on the outskirts of Ahmedabad, the town has become the cynosure of corporates’s eyes. In the last year alone, it has seen investments of over Rs 3,000 crore, a majority of which have been from multinational companies (MNCs) producing automobile components from Japan, Germany and United States.

According to Gujarat government figures, during the last 12 months, Rs 3,000 crore of investments have come to Sanand. During this period, Japanese auto-component manufacturers have taken the lead in pitching tent at Sanand, that is fast emerging as the state’s Motown.

Mitsui Kinzoku Components Ltd deals in development, manufacture and sale of functional components for automobiles. It has acquired 2.15 lakh square feet of space in Sanand at a cost of Rs 50 crore.  Similarly, Showa India Private Ltd, an overseas affiliate of Japanese Showa Corporation, engaged in manufacturing parts for the automobile components, will be investing Rs 230 crore. The company that currently manufactures shock absorbers for two-wheelers in Faridabad (Haryana) has acquired over 4.29 lakh square feet of space, state government sources said.

“Ever since Tata Nano set up base near Ahmedabad, there has been a constant interest from corporates, especially auto-component manufacturers, to set up base at Sanand. Even today, we get 10-12 applications every month,” said a senior Gujarat government official, who overlooks the industrial development at state’s Motown, requesting to remain anonymous.

A Fortune-500 company from the United States, Visteon Corporation (VC), has acquired 4.76 lakh square feet of space at Sanand. A global leader in global automotive parts supply, the company will be investing over Rs 90 crore in the town. London-based Lord Swaraj Paul-promoted Caparo Engineering has taken up 4.29 lakh square feet of space, state government sources said. Caparo already has a unit at Kalol near the the General Motors car manufacturing unit in the Panchmahals district.

Another important firm to enter Sanand in the last 12 months is Cosma International, which is a German automotive supplier that has presence in over 29 countries. Cosma International, a wholly-owned operating unit of Magna International, is one of the world’s premier global automotive suppliers providing a comprehensive range of body, chassis and engineering solutions to our OEM customers. Cosma will be investing Rs 138 crore in buying 3.76 lakh square feet of space.

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