Maruti-Futaba JV to make auto parts in Haryana
HARYANA is in full motion to attract investment in the auto sector. After JCB India Limited and Lord Swaraj Paul’s Caparo Group, each announcing investments worth Rs 500 crore, it is time for auto giant Maruti Suzuki’s joint venture with Japan’s Futaba Industrial Co to make auto parts in Haryana. The company will infuse Rs 393.36 crore as foreign direct investment (FDI). Commenting on the state’s success in drawing investments, Haryana finance minister Mr Birender Singh says, “You will see many such investments coming to Haryana in the coming months.” Futaba will hold 51% for an initial investment of Rs 45.9 crore ($11.6 million) in the proposed venture with Maruti for making auto exhaust system components. Maruti’s joint venture was one of the 13 FDI proposals worth Rs 393 crore cleared by the Centre. Another Japanese firm Mitsubishi Corp’s subsidiary, Metal One Corp, got approval to buy up to 5% in a joint venture where Tata Metaliks will hold 51% and Kubota Corp of Japan will have 44%. The Caparo Group has already acquired 100 acres in Bawal in Haryana, about 70 km from Gurgaon, for development of six new engineering plants. These plants will support the growth of automotive including Honda Cars, Honda Scooters and Motor Cycles, Hero Honda, Swaraj Mazda and New Holland Tractors. It will also be developing a braking system facility and a suspension system facility which will support OEMs. In India, Caparo Group is focused to manufacture components of automotive that include forgings, tubing and tubular components, pressings, fasteners and aluminium castings. The company had also signed a memorandum of understanding (MoU) with the Tamil Nadu government to invest $68 million in manufacturing parts. Around 45 days back, it was JCB India Limited, a wholly owned subsidiary of JCB Excavator (UK) — one of the top five construction and earth moving equipment manufacturers in the world — that had announced expansions worth Rs 400-500 crore at its existing manufacturing facility at Ballabgarh in Haryana.