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Caparo to supply materials for body structure of Nano

By Motortrend India Staff   |   13 February,2008

The UK-based Caparo Group’s move to India is well-timed. Tata Motors has awarded Caparo the contract to supply materials for the body structure of the much-awaited Tata Nano. The company will supply 60 percent of selected inner structural panels from the Singur-based plant located adjacent to the Tata facility. The remaining 40 percent will be manufactured by Tata Group itself.

The Lord Swaraj Paul owned Caparo Group moved to India to establish a component manufacturing plant in West Bengal. The company started its India operations with Maruti Udyog in 1994. Caparo has so far invested close to Rs 1000 Crore across its facilities in Pune, Chennai, and Singur. It is also supplying components for Honda, General Motors, Eicher Motors, and JCB. It plans to set up 22 facilities in these cities for the Nano project. The business from India now accounts for nearly $150 Million.

The world’s cheapest car Nano was unveiled at the 2008 Auto Expo in New Delhi. Nano has opened a floodgate for a new market in India and abroad of ultra-cheap cars. Tata plans to roll out 2,50,000 cars in India every year and soon increase the production to 10 lakhs a year. It is likely that the majority of these cars will be sold in India alone. 

In order to meet steep production numbers, the company has installed a semi-automated production line to achieve zero-faults quality standards. Chief Executive Officer of Caparo Group, Angad Paul said “the body technology is relatively conventional, but the manufacturing technology is result of very sophisticated analysis to ensure high quality, low cost production”. The Group is planning to increase investments in order to heighten its presence in India and achieve a turnover of nearly $1 Billion within the next decade.

The company is also the manufacturer of the world’s first hyper car T1, which has impressed critics with its high performance.

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