The Hindu Business Line : Suzuki seeks FIPB nod to set up aluminium foundry

The company had filed an application with the Foreign Investment Promotion Board (FIPB) last Friday seeking permission to manufacture aluminium castings.

According to the application, the company will manufacture aluminium castings in the country, including those required for the manufacture of two-wheelers.

Earlier this year, Suzuki had received the FIPB nod to set up a two/three-wheeler facility in India. The company is scheduled to roll out its first two-wheeler in the country in 2004 when its "cooling off" period, as per its agreement with the TVS group of companies, ends. Suzuki and TVS had a joint venture agreement for manufacturing two-wheelers in India, which broke off last year.

Meanwhile, according to industry analysts, the aluminium castings manufacturing facility, apart from providing components for two-wheelers, may also supply components for Maruti cars or even other automobile manufacturers.

Interestingly, industry analysts point out that Suzuki had expressed interest to set up a joint venture between Maruti Udyog Ltd (MUL) and Suzuki Motor Corporation (SMC) to manufacture castings as far back as 1997.

However, at that time, the Government had felt that since aluminium castings are already manufactured within the country, there was no urgency to set up a foundry.

Meanwhile, Suzuki's two-wheeler facility is expected to have an initial annual production of 50,000 units, with the expected turnover to range between Rs 175 crore and Rs 200 crore.

Suzuki has indicated that it would invest around Rs 47 crore towards setting up the manufacturing facility at Gurgaon.

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