Chennai: French auto components maker Valeo is setting up two new plants in the country — at Chennai and Sanand.
The company has acquired land in Sanand, Gujarat, and construction will start in a month or so, said Mr P.R. Dhaamodharan, Group President and Managing Director, Valeo India. The plant is expected to be operational by mid-2013.
With big names such as Ford, Tata Motors and Peugeot driving into the region, Sanand is rapidly transforming into an auto hub. Valeo hopes to cater to clients in and around the region through its Sanand plant. This is part of the company's efforts to ramp up local manufacturing to “stay close to customers.”
Products manufactured
Of the 16 product groups globally, only a few categories are manufactured in India. The company, at present, manufactures clutches, lighting systems and switches at its plants in Chennai (Vallam and Madhavaram). Its two Pune plants make security systems, starters and alternators. Valeo also has a friction material factory at Maraimalainagar, Chennai.
The Sanand plant, spread across 15 acres, will manufacture a range of thermal systems and other new products from the Valeo global portfolio that will come into India. By 2013, Valeo is looking to locally manufacture compressors, engine cooling modules, wipers, air management systems and advanced switches.
Valeo is also setting up a new plant in Chennai for clutches, in partnership with the Amalgamations Group. It has acquired land from state industries body, SIPCOT, at Oragadam.
At present, clutches are manufactured at Valeo's plants in Madhavaram and Vallam (Chennai). Valeo plans to move clutch manufacturing to its new plant in Oragadam next year. While Vallam will continue to make switches and lighting systems, operations at the Madhavaram plant, which is on rental lease, will be discontinued.
Valeo India employs around 3,000 people across its plants in Chennai and Pune. It primarily caters to the local markets and exports are miniscule.
Global sales
Valeo's global sales are €10.9 billion.
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