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Rane Group to supply auto parts for Nano
BS Reporter in Kolkata | February 19, 2008 09:59 IST
Chennai-based Rane Group, one of India's leading auto component manufacturers, would invest Rs 20 crore (Rs 200 million) in its first manufacturing unit in the eastern region at the Tata Motors' [Get Quote] Singur facility.
The manufacturing unit, set to cater to the Nano car, will come up on a five-acre plot, which has already been acquired by the group at the Tata Motors's vendor park at Singur.
The investment of Rs 20 crore (Rs 200 million) will be for the first phase and it is to be done through Rane (Madras), one of the eight companies of the Rane Group.
Construction work for the manufacturing unit will start soon and it will be operational within six months.
"Initially, our manufacturing unit will cater to the Nano car but later we also intend to supply our components to the commercial vehicles of Tata Motors. Our manufacturing unit at Singur will be well equipped to meet Nano's projected sales volume of 3,50,00 units per annum", said L Ganesh, Chairman of Rane Group.
Apart from Rane (Madras), two other group companies -- Rane TRW Steering Systems and Rane NSK Steering Systems would set up separate facilities within the same five-acre plot.
The group will be supplying rack and pinion steering gears, lower control arms, steering columns and seat belts to Tata Motors' Nano car.
Tata Motors is the biggest customer of the Rane Group, accounting for 25 per cent of the group's overall turnover.
The Rs 1,365-crore (Rs 13.65 billion) Rane Group is targeting a sales volume of Rs 75 crore (Rs 750 million) per annum from its Singur, unit which will provide direct employment to 350 people.
It has set a turnover target of Rs 1,500 crore (Rs 15 billion) by the end of 2007-08 as against Rs 1,365 crore (Rs 13.65 billion) posted in 2006-07.
Its exports are set to grow from Rs 150 crore (Rs 1.5 billion) in 2006-07 to Rs 175 crore (Rs 1.75 billion) by the end of this fiscal.
Europe and US account for 70 per cent of the group's exports.