Rajkot-based vendors to start Sanand units by Jan

Rajkot-based two auto parts manufactures, who supply parts to the Tata Nano, are all set to start their units in the Vendor Park at Sanand . Amul Industries and Bhavani Industries expect to commission their units at the Vendor Park by January 2010.

Both the auto parts producers have already invested about Rs 45-50 crore for setting up auto parts manufacturing units near Tata Motors' plant in Sanand.

"The constriction work is near completion and we expect to start operations by January 2011", said Suresh Santoki, MD, Amul Industries, which has pumped in around Rs 20 crore for putting up auto part making facility spread across 5 acre land in Sanand.

Amul Industries' Sanand unit will have production capacity of 3000 pieces per day. At present, the company is supplying 800 pieces of crank shaft and connecting rods to Tata Motors for Nano car.

Bhavani Industries, another auto part supplier to Tana Nano, plans to fully commission its unit in the second half of January 2011. "The construction of the company's auto component unit in Sanand is completed and we will start production from early next year", said, Himanshu Nandasana, managing director of Bahvani Industries."We have invested close to Rs 25 crore so far for this unit and imported some equipment from Germany and France," he, said, adding, "It makes business sense to move closer to Nano plant as it would help cut logistic and inventory costs".

It may be mentioned here that Rajkot is popularly known as an automobile and auto parts hub. The district houses 40-50 OEM producers and over 250 suppliers to OEMs and tier-II vendors. Currently, Rajkot produces more than 300 types of parts for automobile industry and provides employment to 20,000 people. It also has the advantage of quality production and comparatively lower cost of production.