Component suppliers follow vehicle makers to Pantnagar

Tata Motors rolled out the first Nano from Pantnagar, a small town in Uttarakhand’s Kumaon region, in a time span of less than five months, with the strong logistical support its ancillaries provided.

An official of a Tata Motors vendor said, “When the project came to us soon after the Singur episode, it became a big challenge to meet the deadline. But ancillaries provided strong logistical support.”

A Tata Motors spokesman agreed that the existing ancillaries played a big role in making the production of the Nano from Pantnagar possible.

Tata Motors, which initially established its manufacturing facility for Ace trucks at Pantnagar with an investment of Rs 1,000 crores, is now being supported by 60-65 ancillaries, which have also set up shop with a total investment of over Rs 900-1,000 crore at the 1,000-acre plot where Tata has its commercial vehicles plant.

These ancillaries not only helped Tata Motors but played a role in companies such as Bajaj Auto and Ashok Leyland setting up shop in Pantnagar, which has emerged as a big auto component hub.

Among the ancillaries that are setting up new units are RSB Transmission, which is investing Rs 65 crore; Bajaj Motors Ltd (Rs 35 crore); Delphi TVS Diesel System (Rs 38 crore); New Allenberst Works Ltd (Rs 47 crore); and Rojee-Tasha, which heads the list with an investment of Rs 89 crore.

According to the State Infrastructure and Industrial Development Corporation of Uttarakhand Limited (SIDCUL), the state government enterprise, the ancillaries of Tata Motors have so far provided employment to 7,199 persons.

Ashok Leyland, the flagship company of the Hinduja Group, is doubling its investment at Pantnagar to Rs 2,000 crore. The company will manufacture 40,000 vehicles a year. Its Chief Financial Officer, J Sridharan, said that five ancillaries of the company have set up shop in Pantnagar.

The Pantnagar industrial estate has also attracted an investment of Rs 500-600 crore from Bajaj Auto, which has established a plant for manufacturing motorcycles.

In the Haridwar industrial estate, two-wheeler market leader Hero Honda, which has set up a new manufacturing facility with an investment of Rs 600 crore, has attracted eight ancillaries. These eight ancillaries have invested a total of Rs 320 crore.

Rockman Industries Ltd, which manufactures auto components, has invested Rs 150 crore at Haridwar to support Hero Honda. A G Industries, another ancillary of Hero Honda, has invested 45.74 crore.

“It’s an ancillary deluge in Uttarakhand. I think other auto companies can also benefit from the tax holiday scheme just like these ancillaries,” said Sudhir Nautiyal, additional director at the department of industries in Uttarakhand.