Caparo, Fenner to set up units in Tamil Nadu

In an effort to promote investments in industrially backward districts of the state, the Tamil Nadu government has signed memoranda of understanding with two companies "" Caparo Engineering India and Fenner India Pvt Ltd ""for setting up their manufacturing units at the Sipcot Industrial Complex in Nilakottai in Dindigul district.

According to a government release, Caparo Engineering and Fenner India will invest Rs 40 crore and Rs 35 crore respectively to set up manufacturing units at the Sipcot Industrial Complex in Nilakottai.

Fenner India, a Chennai-based manufacturer of V-belts, oil seals and power transmission products for the industrial and automotive sectors, proposes to set up a unit for manufacturing belts (V-belts, poly V-belts and timing belts) on a 10-acre plot at Nilakottai.

This unit, which is expected to generate job opportunities for 150 persons directly and 150 persons indirectly, is likely to commence operations within a year. Fenner has manufacturing facilities in Madurai, Chennai and Hyderabad.

Caparo Engineering India Pvt Ltd, part of the UK-based Caparo Group, is proposing to set up a stamping unit spread over 20 acres at the Sipcot Nilakottai park on an investment of Rs 40 crore.

However, it will invest Rs 25 crore in the initial phase and pump in another Rs 15 crore in the second phase in two years. The unit, likely to commence operations by October 2009, is expected to provide job opportunities for 400 people, both direct and indirect.

The Caparo group is also investing about Rs 700 crore in establishing manufacturing operations at Sriperumbudur and Oragadam, the emerging manufacturing hubs of the state. Caparo has informed the government that it will be looking at tier 2 cities in Tamil Nadu for future expansion.

Caparo's Oragadam unit, which will come up on a 100-acre site at an investment of Rs 300 crore, will manufacture tubular parts for the automotive and aerospace markets, automotive braking systems, fasteners, composite materials and testing.