Continental AG to invest over 800 cr in India by 2013

Continental AG to invest over 800 cr in India by 2013

New Delhi: German auto component-maker Continental AG will invest over 800 crore in India over the next two years to strengthen its operations in the country, as well as make an entry into the radial tyres segment.

While the firm will spend 500 crore to ramp up its electronics division and enhance its R&D capabilities, it will pump in over €50 million (about 330 crore) to get into the radial tyre segment. The company acquired Modi Tyres for €18.5 million last year.

“We will invest 100 crore every year on electronics equipment. This will be for introducing new products from our Bangalore plant and supporting new customers," Continental AG member of the executive board (division interior) Helmut Matschi told PTI at 11th Auto Expo.

Continental Automotive Components (India) currently employs 800 people in its R&D wing.

“We will invest €50 million at Modi Tyres’ plant at Modipuram, in UP. We will launch radial tyres for both commercial and passenger vehicles from the plant by 2013," Matschi said.

The company will commence production of radial tyres with an initial capacity of 8,00,000 units a year.

Continental Automotive Components (India) managing director Claude d’Gama Rose said the company plans to increase the production capacity of cross-ly tyres from the plant to 10 lakh units annually from 5 lakh units at present.

Asked about its workforce, he said the company will hike its manpower strength at Modipuran by 800 by next year.

The company has six more manufacturing facilities at Bangalore, Manesar, Pune, Gurgaon, Sonepat and Kolkata for production of various automotive and non-automotive products for the Indian market.

Continental Automotive Components (India) had registered a sales revenue of about €200 million in 2011 and is expecting to grow “faster than global operations", Matschi said.

Globally, the company witnessed growth of about 11% in revenues last year to €29.5 billion.

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