Daicel Corporation to invest Rs 230 cr in airbag inflator plant in Chennai

Till now, the company was catering to Indian market from its production site in Thailand and other countries

Japan-based Daicel Corporation will set up an airbag inflator manufacturing plant in Chennai. The company will invest around Rs 230 crore during the phase-I. This will be Daicel Corporation’s first airbag inflator manufacturing plant in India. The company was catering to Indian market from its production site in Thailand and other countries.

The facility will come up at CapitaLand’s OneHub Chennai, an industrial township.

Takase Yoshifumi, Managing Director, India Operations, Daicel Corporation, said that until now, the company has been supplying products to the Indian market from its production site in Thailand and other countries.

"However, due to the growth potential of the Indian automobile market, and the need to strengthen automobile manufacturer and airbag module manufacturer supply chains in India, we have decided to establish a local production site at OneHub Chennai," he said.

The company will further strengthen its presence in the Indian market through stable production and supply of products, contributing to the development of the Indian economy through both inflator production and parts’ procurement in the country, added Yoshifumi.

The plant will meet growing demand for automobile airbag inflators in the country. Daicel is scheduled to start operations by December 2023.  

Earlier during October 2018, in response to growth in the Indian automobile market and the tightening of safety regulations, Daicel established a sales base (Daicel Safety Systems India Pvt. Ltd., DSSI, Gurugram, Haryana).

Vinamra Srivastava, CEO, Business Parks, CapitaLand India, said that OneHub Chennai offers the right eco-system and plug-and-play infrastructure for the company’s manufacturing plant. We are excited to be part of Daicel’s important milestone and look forward to support their growth in India.