Micro-market

a new production complex with 4,000 sq. m. that would bring in additional space to accommodate further production and warehousing activities.

tool and die shop and employs highly skilled workers to ensure the highest standards of quality and efficiency.

The facility also features advanced testing and inspection equipment to ensure that all products meet or exceed the strictest industry standards.

V. Vikram Verma, Chief Executive Officer of the Driveline business at Sona Comstar, added, “The plant’s strategic location in the automotive hub of India will help us better serve our customers in the western and southern regions. We are confident that the new plant will enable us to meet the increasing demand for our products and accelerate our growth.”

In 2015, tier1 supplier ZF Group announced an expansion at its regional headquarters in Chakan. Back then its facility with a 16,770 sq. m. built-up space was fully utilised with commercial vehicles, car power trains and the aftermarket business. So, the company announced

It is announcements like these that elevated the status of Chakan coupled with the presence of leading OEMs in close proximity to their tier1 supplier partners. OEMs also take solace in Chakan’s proximity to nodal agencies for type approval and homologation. For instance, it is about 36.5 kms to Kothrud where the premiere institute, the Automotive Research Association of India (ARAI) is housed. At 20 km, one can reach the Central Institute of Road Transport (CIRT) at Pimpri Chinchwad.

Chakan is also home to the Maharashtra Industrial Development Corporation (MIDC) and boasts of a Special Economic Zone (SEZ). The industrial district of Chakan includes both MIDC leasehold and resale freehold units. Chakan MIDC developed this 246-hectare region with basic and high-quality infrastructure, attracting numerous large industrial parks. More than 100 companies in the automotive space including well-established OEMs, tier suppliers and startups are known to have zeroed in on Chakan as a testimony. Time and again, manufacturers have admitted to the strategic advantages of setting up a manufacturing base in Chakan. Anirudh Bhuwalka, Chief Executive Officer, of Blue Energy Motors, said, “Chakan is a home ground where all spare parts and big players of the automotive component industry have their manufacturing units here, so spare part availability is never an issue.” In December 2022, Mahindra & Mahindra (M&M) announced Rs.10,000 crore (USD 1.2 bn) investment earmarked for an up to eight-year period for a EV manufacturing plant, in the

Pune region, approved under the Maharashtra Government’s industrial promotion scheme for EVs.

Movement of parts

Swift movement of parts is crucial to the ‘Just-In-Time’ or ‘Just-In-

Case’ requirements. Here logistics plays a crucial role. At Chakan, the concentration of freight carriers has proved to be a boon. M/S Maruti Suzuki, APL Logistics, IVC, JKTIPL, Touax Texmaco, Adani Logistics and TCI are among the companies handling a major chunk of the cargo. The proximity to Nhava Sheva, Navi Mumbai, at an estimated distance of 150 km boosts multimodal connectivity further.

The announcement by Mahindra Logistics Ltd. of a one million sq. ft. park at Chakan is a significant development too. Talegaon-II, part of the Chakan Talegaon Industrial Corridor (CTIC) is among the soughtafter manufacturing clusters in India. The manufacturing base for large auto, engineering, and electronics companies is witnessing a spurt of activity, courtesy, the impetus on higher localisation. Rampraveen Swaminathan, Managing Director & Chief Executive Officer, Mahindra Logistics deems it to be one of India’s leading industrial and consumption clusters. “The region is the largest area for Mahindra Logistics, and we are pleased to announce this investment in partnership with AscendasFirstpace,” he states.

Supporting infra

Maharashtra State Electricity Distribution Company Ltd. (MSEDCL) is known to have commissioned three new switching stations. With capacity augmentation, MIDC Electricity Improvement Scheme is expected to offer the necessary power infra to industrial suppliers based out of Chakan MIDC. Chakan MIDC has approved an expenditure plan of Rs.15.49 crore under the Electricity System Improvement Scheme (ESIS). As a result, a more reliable and consistent power supply will be offered to nearly 3200 industrial clients including automotive establishments. ACI