Caparo to set up Rs 100 cr unit in MP

Swaraj Paul-promoted UK-based Caparo group's Indian arm Caparo Engineering India Pvt Ltd is planning to set up a manufacturing facility in Madhya Pradesh.

It is a 100 per cent Caparo-owned company, located in Pithampur (Madhya Pradesh). The Indian entity of Caparo already has a stamping unit in Madhya Pradesh and the group is expanding its Indian operations, particularly in Madhya Pradesh.

The Caparo group will invest Rs 100 crore in the new Tubings facility. It will take shape in Pithampur. The unit is expected to start production by next year.

Senior executives of the company yesterday held discussions with Chief Minister Shivraj Singh Chauhan, made a presentation on the company's investment plan in Madhya Pradesh, and asked for concessions.

"They are planning a Rs-100 crore unit in two phases. The unit will generate 800 jobs. It will have domestic as well export markets," said a government source. Company officials were not available for comment.

The firm, according to sources, has asked for land allotment; sales tax deferment; subsidies as per the investment policy; and concessions in land prices by considering the project as a mega project; the chief minister's sanction of special economic and other package on a case-by-case basis; assistance to thrust sector industries; and industrial promotion assistance and package for auto component industry.

"The chief minister has yet not assured anything," the source said.

The Caparo group has a sheet metal stamping unit in Pithampur. "The company is expanding the existing units by setting up a long-members unit (members on which the complete chassis and body of light or medium heavy commercial vehicle rest), an iron foundry and forging unit in Dewas, and is investing in Pithampur Auto Cluster Pvt Ltd, besides this tubings unit," said an industry source.

The long-members unit is expected to start production by August while the iron foundry and forging unit will start production next year.