The $ 5.3 billion International Automotive Components Group (IAC) has entered the Indian market. IAC on Friday broke ground at Chakan in Pune for a $ 22.4 million facility that will begin supplies to the Mahindra & Mahindra group (M&M) and Volkswagen in India. The company that opened its first technology centre in India at Hinjewadi plans to shift 40 % of its design work to the India centre. IAC is the third W L Ross company to set up operations in India.
?Asia is critical to us and India as a part of Asia is even
more critical. Our strategy is not to target every piece of business available; instead we will remain focused on Pune and will expand to two more locations in Delhi and Chennai
in the near future,? James K Kamsickas, president and CEO, IAC Group, North America and Asia said.
The Chakan facility is slated to be completed in Q3 of 2009 and will manufacture vehicle interiors components and systems including instrument panels, cockpits and door assemblies for a future Mahindra & Mahindra utility vehicle and glove box assembly for Volkswagen Polo small car program in India.
?Our intent is to set up soft trim manufacturing facilities and headliners and carpets will come up in the second phase,? Kamsickas said.
?We plan to go after General Motors, Volkswagen, Renault-Bajaj and Daimler as well for business. Chakan will have a cockpit facility and an interim manufacturing facility for M&M,? he said.
He added that the company was in talks with Suzuki and Honda for the proposed plant in north India and Renault Nissan and Ford for its south India expansion.
He hinted that the company would not be averse to an acquisition in India if the right opportunity presented itself.