Spain?s largest auto parts maker, Gestamp Corporation, has invested euro 82.5 million to set up a plant at Chakan in Pune to make metal components, exclusively for Volkswagaen in India. This is one of the largest flows of FDI from Spain into India. Gestamp will make the full range of white body and metal components for the Polo and Fabia models.
Gestamp is the first captive vendor to set up shop at the proposed Volkswagen vendor park. Gestamp is a euro 3.5-billion turnover company. The plant will be its eighth plant in India and their first fully-owned facility. The company has seven JV plants already running in India.
Francisco Jose Riberas Mera, CEO of Gestamp Automocion, SL said it was important to be close to the OEMs and it has set up all these plants because of the logistics. Joerg Mueller, Volkswagen chief representative India, president and MD of Volkswagen India said co-habitation was important because there are synergies to be derived from physical proximity, Mueller said at the inauguration of the plant in Pune on Tuesday.
Jose Maria Garmendia Gutierrez, MD, Gestamp Automotive India said the Gestamp India is looking at a turnover of euro 75 million 2014.