The Indian arm of German auto component maker Schaeffler will invest over Rs 300 crore in the next four year 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.
The MoU was signed in the presence of Tamil Nadu Chief Minister MK Stalin and Harsha Kadam, MD & CEO Schaeffler India as well as the company's Chief Finance Officer and Director of Finance, Satish Patel, as per the statement.
“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. Further, according to the MoU, the Tamil Nadu government will facilitate and help Schaeffler India get the necessary infrastructural and regulatory support on best-effort basis including the single window facilitation as per Tamil Nadu Business Facilitation Act 2018, it said.
“We have a long standing and productive relationship with Tamil Nadu Govt as we are already operating in Hosur for many years now. I am delighted to deepen our relationship today with this MoU,” said Kadam. “This expansion is in line with our strategic growth plans for India as we continue to localize and sustainably expand our footprint. We are certain that this agreement will further strengthen the relationship and take it to the next level,” he added.
(With inputs from PTI)
