- 21 ноябрь 2018
AHMEDABAD: With automobile industry giants setting up their manufacturing facilities in Gujarat, auto component makers — both domestic and international — have begun choosing the state as a potential investment destination.
Three automobile component manufacturers from Japan, Asti Corporation, Koito Manufacturing Company Limited and Murakami Corporation have recently procured land to set up their units in Sanand and Mandal industrial clusters, in the run-up the the Vibrant Gujarat Global Summit (VGGS) 2019.
An estimated cumulative investment of Rs 800 crore will be made in Gujarat by the three companies.
“Koito Manufacturing Company Limited is foraying into the Indian market, and will be incorporated as India Japan Lighting Private Ltd. The company, which will set up its manufacturing plant to make automotive lighting and accessories has already procured a land parcel of some 70,000 square metre in Sanand Industrial Estate-II, located some 38km from Ahmedabad,” said a source privy to the development.
The source added, “The company will be investing Rs 600 crore for its upcoming facility which is likely to be commissioned by August 2020.”
The other two Japanese auto-component manufacturers that have also been recently allotted land are Asti Corporation and Murakami Corporation. They have committed investments worth Rs 100 crore each. Sources said land parcels have been allotted to these companies at the industrial estate located in Mandal, which is situated some 86km from Ahmedabad.
Mandal is close to Vithalapur and Bechraji, where two Japanese automobile giants namely Suzuku Motor Corporation (SMC) and Honda Motorcycles and Scooters India (HMSI) Limited have set up their manufacturing facilities.
“Asti Corporation has been allotted a land parcel of 30,000 square metres and it will manufacture electrical systems for automobiles. The company’s plant is likely to be commissioned by October next year,” said a source.
He added, “Murakami Corporation on the other hand, has already initiated construction and will also commission its plant by the third quarter of the financial year 2019-20.”
Four automobile manufacturers have so far invested around Rs 15,000 crore in Gujarat.
After a slew of automobile industry giants setting up their car or two-wheeler manufacturing facilities in Gujarat, the state is shaping up to become a hub for automobile industry and a preferred investment destination for auto component makers.
Highlighting the scope, Vinnie Mehta, director general, Auto Components Manufacturers’ Association (ACMA), said, “Japanese auto component makers will make investments based on what the vehicle manufacturers plan to do. All the automobile industry giants that have invested in Gujarat are expanding aggressively and the growth projections look buoyant as vehicle consumption in India is robust.”