US-based Carr Lane Manufacturing and Chennai-based Rialto Enterprises Pvt Ltd, part of the Rs 600 crore Rayala Group, have entered into a joint venture to produce specialised aerospace components, initially to export products to Carr Lane's international market.
"Carr Lane Manufacturing has recognised an opportunity to not only control production costs through product sourcing from India, but also a market within India for India products," said Colin Frost, COO of the $50 million tooling company, Carr Lane Manufacturing. He added that during the first three years, most of the production from India will cater to exports.
The new 70:30 JV will start commercial production within three months and in the next 24 months, it hope to achieve sizeable turnover. There are plans to invest around Rs 80 - 100 crore in the first three to four years.
Ranjit Pratap, managing director of Rialto Enterprises, said that the basic infrastructure for the new facility is already available in the company's factory to produce the high quality components that are used by the aerospace industry. Rialto already manufactures press componets for auto-component firm Wabco. The company's oral care division manufactures Oral B toothbrushes under license from Procter & Gamble and currently produces 30 million tooth brushes a month.