New unit at Hosur will cater to upcoming demand for passenger vehicles, says Schaeffler India’s Harsha Kadam

"Under the agreement, Schaeffler India will invest over Rs 3,000 million in next four years to set up a new greenfield manufacturing facility in Hosur, Tamil Nadu for manufacturing of transmission components and systems for automotive and tractor segments," the company said.

The proposal will engender tangible economic and social benefits to the state while generating direct employment for more than 300 individuals, it added.

Speaking to CNBC-TV18, Harsha Kadam, MD and CEO of Schaeffler India said, “We already have a plant in Hosur, which is catering to the transmission equipment demands of the automotive sector. As you see there is a strong growth in the automotive sector, we felt the need to expand our capacities. Hence, we have also expanded our footprint by putting up a new plant with Rs 300 crore of investments coming in.”

Kadam said that the new demand will mainly come from the passenger vehicle and the tractor segment.

“This is going to enable not just the sales for Schaeffler India but also enable tangible economic and social benefits to the state while also generating direct employment for more than 300 individuals in the state," he added.