The Rajkot-based auto ancillary units are a worried lot, as the Tatas’ Nano car project seems to be getting delayed. They had been counting on the project to boost their businesses; many had work orders in the pipeline that solely depended on the plant. The inordinate delay has directly hit most of these units. Amul Industries, a major auto parts manufacturer in Rajkot, had begun preparations for a major expansion in September. Tata Motors had just announced the relocation of the Nano car plant from Singur to Sanand in Ahmedabad district. With Tata Motors expected to roll out the first car in mid-2009, this supplier from Rajkot district was upbeat about the possibility of growing business in the proximity. But the joy proved to be short-lived. The global meltdown has delayed the small car project further and suppliers such as Amul Industries are disappointed.The unit of Amul Industries at Aji GIDC in Rajkot manufactures parts for major automobile companies. Expansion plans included a dedicated unit for connecting rods, especially designed for Nano, at the 1,100 acre vendor park in Sanand. The Amul Industies is estimated to supply 35,000 rods per month to Nano.The meltdown has completely changed the picture. Not only has there been a cut in the demand following a slump in the automobile industry, but inauguration plans of the Sanand unit have also been delayed, at least by six months. Suppliers have said Tata has not given them a ‘go ahead’.“We began work by planning to set up a special connecting rod unit by July 2009,” said Suresh Santoki of Amul Industries, adding, “Given the slump in the auto industry, the setting up of vendor park for Nano has been delayed.” Santoki is not hoping to see a unit come up at Sanand vendor park before January 2010.Like Santoki, other manufacturers from Rajkot and Bhavnagar, who had been eying the Nano to expand and develop their business, are now uncertain about the future. There are over 100 auto part manufacturing units in Rajkot. Many of these are suppliers of Tata Motors. The industry, with a turnover of Rs 500 crore, was hoping to register a two-fold growth, with the smallest car plant coming up at their doorstep. Some of them have now put expansion on hold, even as the rest of them, for whom business is going to be down by 50 per cent by the end of the year, are just hoping for the global market to show some improvement.“I have put off my plans to set up a unit at Sanand for the time being. These days, there has been little encouragement from Tata,” said Neesith Mehta of Microsign Products from Bhavnagar. He added, “Not only have the supply demands gone down, but Tata Motors are not really pushing us to set up plants there.”
