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January 10, 2012

French auto spares firms eye JVs in Gujarat

AHEMEDABAD: Some 60 French companies will explore joint ventures with Gujarat-based auto component makers at a business-to-business or B2B meet organised by the state government later this month in capital Gandhinagar.


"French auto vendors are willing to set up units at vendor parks coming up near the upcoming facilities of Ford and Peugeot in Sanand.

Some of them have already started talks with local companies.

and we hope to see a couple of joint ventures after the meet," a state government official said. Gujarat government has been inviting auto parts companies to set up manufacturing base.

The move follows announcements by multinational companies like Ford Motors and PSA Peugeot Citroen that they would invest in setting up manufacturing facilities in the state.

Maruti Suzuki had also announced last year that Gujarat will be its hub in the next round of expansion. Tata Motors has already set up a facility for its small car Nano. Entry of auto vendors will also help auto MNCs source components locally.

Industrial Extension Bureau (iNDEXTb), the industrial promotion arm of state Industries department, will organise the B2B meet jointly with French car-maker Peugeot; French Equipment Industries Vehicle (FEIV), an association of auto vendors based in France and Auto Component Manufacturers Association (ACMA), the body of India-based auto vendors.

ACMA believes auto vendors have business potential as Gujarat is now home to auto companies like Tata Motors, Ford Motors and Peugeot, while Maruti Suzuki and two-wheeler manufacturers are eyeing at the state for the next round of expansion.

Auto vendors from France are from wide ranging sectors like forging, stamping, thermo-static and pressure control devices, elastic suspension parts, connectors, gear box control, rubber products, air intake and cooling systems, body component and modules, plastic part design, assembly and rolling forming, business development support, design and manufacturing.

The meet is expected to give a boost to the auto vendors based in Rajkot in Saurashtra. "We will inform our members regarding the proposed meet.

We want local companies to take maximum benefit from the arrival of auto and auto component MNCs in the state," Bhavesh Patel, president of Rajkot Engineering Association said.

Gujarat is emerging as an auto hub after Tata Motors decided to invest Rs 2,200 crore in Sanand, near Ahmedabad, for the mother plant of its small car Nano. State government also came out with a policy for mega-projects involving investments of over Rs 1,000 crore.

American car maker Ford Motors and French car-maker Peugeot are also investing Rs 4,000 crore each at Sanand. Maruti Suzuki, along with its vendors, has announced that it will invest Rs 18,000 crore in Gujarat for the next round of expansion.

State chief minister Narendra Modi has set a target to facilitate production of 50 lakh automobiles (including two-wheelers) in the state by 2020.

indiatimes.com

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