With Gujarat aiming to emerge as the new auto hub for the country, more and more companies are looking at parking their auto ventures in the state. The latest to join the bandwagon is Mumbai-based Setco Automotive, which has tied up with Germany's FTE to invest Rs. 100 crore for a greenfield project at Kalol in Panchmahals district. The company intends to set up a facility to manufacture clutch actuation systems.
Clutch actuation systems are state-of-the-art plastic products and they are not produced in the country at present. "Initially, we will import parts and assemble them here and later on manufacture clutch actuation systems here at Kalol plant," said Udit Sheth, executive director, Setco Automotive.
Setco plans to manufacture clutch actuation systems for commercial and passenger vehicles. The greenfield project is likely to be commissioned by early 2010 and it is expected to generate employment for 300 people. Setco has 51 per cent equity in the joint venture, while rest is with FTE of Germany.
In addition to this, Setco proposes to invest around Rs. 50 crore for modernization and expansion of its existing Plant at Kalol near Vadodara.
The investment will be done in next 2 years. The company also plans to put up a new unit in a special economic zone with an investment of Rs 75 crore for its growing global market. "Currently, the company is looking at various SEZs in Gujarat such as Mundra SEZ, Kandla SEZ, Dahej SEZ and Sterling SEZ. We will finalised the location depending upon the resources we get," Sheth added.
