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

The Indian arm of German auto component maker Schaeffler will invest over Rs 300 crore in the next four years in setting up a new manufacturing facility in Hosur, Tamil Nadu. The proposed plant will manufacture transmission components and systems for automotive and tractor segments, the company said in a statement.

For this purpose, Schaeffler India on Tuesday signed a Memorandum of Understanding (MoU) with Tamil Nadu government's nodal investment promotion and facilitation agency, Guidance, at the Tamil Nadu Investment Conclave in Coimbatore.

"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.