Riding on the back of a booming car industry, Kalyani Lemmerz Ltd will invest at least Rs100 crore to set up a new plant to produce four million passenger car wheels.
Kalyani Lemmerz is the Indian subsidiary of Hayes Lemmerz International. Part of the investment is for expanding capacity at its existing commercial-vehicle wheel plant.
“The passenger car project will allow us to tap the huge passenger-car market that is evolving in India, especially in the Pune region that is evolving into a major hub of global auto companies,” said Baba Kalyani, CMD of Kalyani group, which owns a 15% stake in Kalyani Lemmerz. Hayes Lemmerz owns the rest.
Some 3.5 million cars are expected to be on Indian streets by 2011. The car-wheel manufacturing facility, to come up at Chakan, will initially make two million wheels, said Fred Bentley, president, Global Wheel Group. The Pune region has recently seen big-ticket investments by auto companies such as Volkswagen, General Motors and Fiat, which are expected to launch India-specific cars, beginning next year.