Caparo group to invest in Nellore

Hyderabad: London-based Caparo Group — a manufacturer of steel, automotive and general engineering products — will invest Rs 3,500 crore in setting up an automotive and aerospace components park in Naidupet in Nellore.

The €1-billion company, which currently operates 28 component units in India with 2,000 employees, signed a memorandum of understanding (MoU) with the Government of Andhra Pradesh on Saturday.

The 2,000-acre park will be a world-class automotive and aerospace component facility, Mr Sunil Pahilajani, Managing Director and Chief Executive Officer, Caparo India, told newspersons after signing the MoU.

“We will don the roles of a developer as well as a manufacturer. We wish to bring in auto component manufacturers while being a big manufacturer in the park,” he said.

The company hopes to complete the first phase of the project with Rs 2,000 crore in about 18 months. The park would generate direct and indirect employment for over 10,000 people.

The clinching of the Caparo deal did not come easy for Andhra Pradesh, which faced stiff competition from Tamil Nadu.