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Home arrow News arrow Alliances and Joint Ventures arrow Continental to set up manufacturing plant in India with RICO Auto
Continental to set up manufacturing plant in India with RICO Auto Print E-mail
Written by Arjun   
Wednesday, 20 June 2007
Continental Automotive Systems will set up a New Manufacturing Plant in India with RICO Auto

The Plant of Hydraulic Brake Systems to Begin Production in 2008

 New Delhi, India / Frankfurt am Main, Germany : International automotive supplier Continental AG, for its Automotive Systems Division, has signed a Joint Venture Agreement with RICO Auto Industries Limited, India to build a hydraulic brake systems plant in India in a two step approach generating sales of € 30 million (Rs 165 Crores) in a first phase.  The joint venture will be a 50/50 partnership between the two companies. Continental Automotive Systems will have the management lead. The plant will begin mass production of hydraulic brake systems in 4th quarter of 2008, with employment of around 450 staff in Gurgaon near New Delhi. On completion of 2nd phase the plant will have annual turnover of € 65 millions (Rs. 357.5 Crores) and would be employing 625 persons.

  When construction is completed in 2008, the plant will produce hydraulic brake products and services consisting of calipers for front and rear axles, drum brakes, master cylinders, brake boosters and load sensing proportioning valves for vehicles of all classes, and supplying to OEM customers in India. The planned annual production capacity is 1.0 million of brake actuation units and 2.0 million of brake calipers, 1.5 million drum brakes and 0.5 million load sensing proportioning valves.

 “With its rapid growth during the past decade, India has indisputably become a key marketplace in the future development of the global automotive industry and we consider our new plant as our 1st step in our long term strategy for India” said Dr. Karl-Thomas Neumann, President of Continental Automotive Systems and Member of the Executive Board, Continental AG. Continental Automotive Systems set up its presence in India in 2006 and recently started engineering activities in Bangalore.

 RICO, a US$ 250 million group is a well known name in the Indian automotive industry. With one of the biggest ferrous & aluminum casting & machining facilities in the country, RICO is one of the major suppliers of machined components and assemblies to Indian & global OEM’s.

 “RICO is a well established auto component supplier in India, which will bring local market know-how to the JV", said Mr. Heinz Zingel, Executive Vice President, Hydraulic Brake Systems and member of the Management Board of Continental Automotive Systems. “We are very pleased to have Continental as a partner in this venture. Continental being one of the leading technology provider & manufacturer of brake systems in the world would add significant value to the Indian Auto Component Industry through this Joint Venture. With our experience in casting & machining, along with Continental’s proven leadership in the braking systems, we complement each other very well”, said Mr. Arvind Kapur, Managing Director, RICO Auto.

The Continental Corporation is a leading automotive supplier of brake systems, chassis components, vehicle electronics, tires and technical elastomers. In 2006 the corporation realized sales of EUR14.9 billion. It has a worldwide workforce of around 87,000.

The Automotive Systems Division of Continental AG integrates extensive know-how and uncompromising quality in the fields of active and passive driving safety, embedded telematics and hands-free communication systems, powertrain and comfort. In 2006 the Division achieved sales of approx. EUR6 billion with a workforce of more than 30,000. Continental Automotive Systems develops and produces electronic and hydraulic brake, stability and chassis control systems, electronic air suspension systems, sensors, engine management and transmission control systems, hybrid drives, cooling fan modules, body and security electronics and also is the industry leader of embedded telematics and communication systems in vehicles.

 

 
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