Indo-German JV to set up auto parts plant

Published: 19 Mar 2009 18:32:37 PST

Construction equipment maker SETCO Automotive has entered into a joint venture with Germany-based firm FTE for setting up a plant to produce automotive parts at Kalol in Gujarat. "The JV would invest Rs 200 crore in setting up the plant, which will manufacture actuation system," said Harish Sheth, chairman, SETCO Automotive. "This plant is expected to be ready within two years," he said, adding that it would meet the requirement of automobile industry across the country. SETCO already has a manufacturing plant at Kalol. The Rs 160-crore company has been manufacturing clutch products for automotive and hydraulic products for construction equipment industry. It has a unit in Uttarakhand. The company is also planning to set up another unit in one of the special economic zones coming up in the state. The actuation system plant will encourage setting up of about 25 ancillary units in the area for meeting its requirements, Sheth said, adding that it will generate employment for 2,500 people in the area.