Caparo plans new plants in MP

After signing a MoU with NRI industrialist Lord Swraj Paul's Caparo group for setting up new manufacturing facilities in Madhya Pradesh at an estimated cost of Rs 80 crore (Rs 800 million), Chief Minister Babulal Gaur on Tuesday left for Chicago where he will showcase his state's potential for investment and tourism.

Gaur said Commerce Minister Kamal Nath, will be present at Chicago to make a joint pitch for investment and tourism in Madhya Pradesh. The Chief Minister, who is accompanied by state chief secretary Vijay Singh and other top officials, would also go to New York before returning home.

The MoU for setting up new manufacturing facilities in Pithampur was by Angad Paul, chairman of Caparo Engineering India Pvt Ltd and Raghav Chandra, managing director, Madhya Pradesh State Industrial Development Corporation in the presence of the Chief Minister Babulal Gaur and Caparo Chairman, Lord Swraj Paul.

Caparo has already invested Rs 30 crore (Rs 300 million) in its sheet metal stamping unit in Pithampur, and under the MoU, it would further expand its sheet metal stamping unit at a cost of Rs 25 crore (Rs 250 million).

Besides, it would invest Rs 24 crore (Rs 240 million) in long member chassis unit, Rs 15 crore (Rs 150 million) in iron foundry and forging and another Rs 15 crore for expansion of long member unit, in all providing additional employment for about 100 people.

CEIPL is a company 100 per cent owned and managed by Caparo Group of UK. CEIPL's main business in India is metal stamping for automobile customers. It has state-of-the-art manufacturing facility at Pithampur and supplies to leading automobile companies like Eicher, Bajaj Tempo, General Motors, Delphi, Ford etc.

The Caparo Group is a $1.3 billion multinational conglomerate with main business of steel and metal conversion and has business in Europe, US and India.