Delivering end-to-end automotive solutions Caparo

DELIVERING END-TO-END AUTOMOTIVE SOLUTIONS

Caparo is one of the major manufacturers of automotive systems, assembly modules and components for the top automotive OEMs and the world’s engineering majors. Philip Yorke talked to Hon Ambar Paul, Chairman, and Mr Rajesh Soni, COO, about its latest innovative products and move into new markets.

Caparo was founded in the UK in 1968 by Indian born, British industrialist Lord Paul of Marylebone, London. The fast growing UK based group has a €1 billion turnover with business interests in the manufacturing of steel, aluminium and general engineering products for the global automotive industry. Today the Caparo Group is an international entity with over 40 companies operating from more than 40 countries worldwide.

The company’s Indian business arm was founded in 1994, as a joint venture with India’s largest car manufacturer, Maruti Suzuki India Ltd.

Today, through its multiple strategic business interests, the group offers end-to-end automotive solutions in the design, development and manufacture of components for the world’s biggest automotive OEMs including Volvo, Tata Motors, Mitsubishi, Daimler, Jaguar, Range Rover, Honda, JCB and many others.

Caparo India leverages its considerable capabilities in metal stamping, fastening, tubing, forging, aluminium die casting and fabrication to improve the efficiency and profitability of the companies it serves. This expertise is coupled with its state-of-the-art tool room and comprehensive R&D Centre. Currently Caparo employs more than 6000 people directly and indirectly across its 23 worldclass manufacturing facilities. A leading solutions provider

Caparo India is now focusing on the manufacture of more highvalue automotive components, in addition to enhancing its growing product portfolio with existing customers. So far Caparo India has been investing consistently in new plants and technology and plans to increase its investment programme by a further 10 per cent this year alone. Recently Caparo India created a central ‘validation unit’ which has since become the single business development window to serve its automotive customers. The company also established a customer relationship management cell, which has further helped Caparo India to transform itself into a complete business solutions provider instead of just a pure components supplier.

This strategy has enabled Caparo India to evolve from a low-volume, low margin business into a high volume business with better margins.

Ambar Paul said, “We are continuing to diversify and while still driving our growing automotive components and fasteners business, we are also seeing strong growth in our latest, innovative new businesses which include the design and manufacture of modern E-Rickshaws and metal components for a variety of two wheel vehicles. We are riding on the back of our automotive business division and investing in completely new business sectors such as the production of small power plants. This we are doing in close cooperation with Wartsila of Finland.”

He continued: “This power plant business was started five years ago for the Indian market and has seen strong growth from the outset. We are also one of the most successful stamping suppliers in India and set the standards when it comes to quality. We continue to invest in new strategic sites that are located close to our automotive customers and partners. We work closely with our OEM clients on the development of new models and we are looking at other areas for expansion. Therefore we continue to look at all the options open to us, including the possibility of new joint ventures and acquisitions. We expect to see growth approaching 20 per cent over the next few years which will significantly increase our turnover, currently running at over €300 million.”

In a further diversification, Caparo India is now working with Germany’s auto major Daimler to supply components for its manufacture of commercial vehicles in India. Daimler has introduced light-weight trucks from the Mitsubishi Fuso stable into the Indian marketplace. Gas-fired success

The joint venture with Wartsila of Finland to establish a natural gas plant in India has been a major success. The joint venture firm, in which Caparo owns a controlling stake of over 50 per cent, will set up a 26MW gas-based environmentally friendly power plant at Bawal at Haryana in India. Natural gas, being the cleanest of all fossil fuels, will help the company to reduce harmful emissions into the atmosphere, especially when compared to traditional coal-fired power plants. The new plant will cater to the captive energy requirements of the group’s joint venture with Maruti Udyog and vendors such as Asahi India, Talbros, Sankei India and others located in the region.

Following its successful installation, the capacity will be increased to 50MW. Wartsila managing director Rakesh Sarin said that the project also offers excellent prospects for scalability. n For further details of Caparo India’s innovative products and services visit: www.caparo.co.in