Japanese auto parts
maker Hitachi Automotive Systems Ltd will start production at its new facility
in Tamil Nadu in six months. The company is investing Rs.313 crore in setting up the unit which will
bring it closer to customers located in the automobile industry hub near
Chennai, said Kunihiko Ohnuma, chairman and chief executive officer. The
facility is coming up on 25 acres at OneHub Industrial Park.
Two products—valve
timing control systems and ignition coils—that are manufactured in Japan will
be built in the new Chennai unit, said Bradley J Maggart, senior vice
president, sales and GM, international sales, and corporate officer, India.
The company is looking
at suppliers who will manufacture these components for it in India as there is
a requirement for 90 % localization of components. The new manufacturing unit
will also export products to Europe, South-East Asia and Brazil.
Talking about the challenges
faced by multinational companies investing in Tamil Nadu, Hitachi Ltd’s
Asia-Pacific CEO Ichiro Lino said the issues were similar to those in other
states—insufficient availability of power and water and logistics support.
Chennai’s port is an advantage because it helps manufacturers ship their
products overseas, he added.
In the last two years,
Tamil Nadu’s economy has grown at the slowest rate among India’s 17 large
state. The state’s growth rate fell by two-thirds to 4.14 % in 2012-13 from
13.2 % in 2010-11, according to the Central Statistical Organisation. The Tamil
Nadu government is organizing a global investor meet on 23-24 May to attract
investment worth Rs.1 trillion.
Source : livemint.com
Source : livemint.com