The park will involve an investment of about Rs 300 crore (Rs 3 billion) and offer a range of component solutions to the aerospace industry.
The company has conveyed its intention to the state government to set up the aerospace component facility in Tamil Nadu.
"The plan is still in the early stage and we have not prepared any blueprint or roadmap for this venture. It will take a few months to say anything concrete," company sources said.
The Caparo group has sought land and other support from the state government to set up the facility. The plan comes on the heels of Caparo's strategy to strengthen its foothold in the aerospace business.
The group currently supplies components to the aerospace industry out of its facilities in Europe and India, where it operates a fasteners facility at Chopanki, Rajasthan. Caparo supplies to aerospace customers such as Rolls-Royce and Pratt & Whitney through Goodrich Corporation.
A few months ago, Angad Paul, chief executive, Caparo, and chairman, Caparo India, had expressed confidence that Chennai, with its knowledge base and high talent pool, could become a hub for aerospace components and manufacturing as in the case of the automotive component industry.
While Caparo aims to become a total engineering solutions provider for the automotive market, it would also use its knowledge base in the auto industry to attract aerospace Original Equipment Manufacturers (OEMs) from across the globe, he said.
Paul also said that the entire aerospace industry was growing across segments. The aerospace components industry is expected to outstrip the auto component industry in the future. "Our next big push will be in the aerospace business," Paul said. While the current contribution of the aerospace business to the company's total turnover is minuscule, Caparo sees a huge scope for the aerospace component solutions business, and expects it to be a major contributor to the group's top line in 10-15 years.
The US-headquartered Trusted Aerospace and Engineering (TASE) has set up a Rs 40 crore (Rs 400 million) export-oriented facility near Sriperumbudur to manufacture components for aerospace OEMs.