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Home arrow News arrow Auto component arrow Kalyani Hayes Lemmerz Ltd inaugurates steel wheel rim plant at Chakan
Kalyani Hayes Lemmerz Ltd inaugurates steel wheel rim plant at Chakan Print E-mail
Written by Rajeev   
Wednesday, 24 November 2010
Pune: Kalyani Hayes Lemmerz Ltd, a joint venture between Hayes Lemmerz International and Kalyani Group, inaugurated it's new greenfield plant at Chakan near Pune, for the production of steel wheel rims for passenger cars.

The new facility has been set up at an investment of Rs 70 crore (15.31 million U.S. dollars) and has an initial installed capacity to produce 20 lakh wheel rims a year. This can be scaled upto 40 lakh wheel rims a year. The expansion, which is likely to happen in the near future, will involve an additional investment of around Rs 55 to 60 crore (12 to 13 million U.S. dollars).

The plant also has a paint shop, which has a capacity of 40 lakh wheel rims.

Some of the major passenger car manufacturers like Tata Motors, Fiat, Mahindra & Mahindra, VW, Ford India and Renault Nissan India have already placed orders  for 17 lakh wheel rims. VW has placed orders to cater to it's plants in India, China, Mexico and the US.

"The passenger car market is poised for dramatic growth. The growth is attracting many foreign OEMs to start their manufacturing facilities in the country," said Baba Kalyani, Chairman, Kalyani Group. He said that the passenger car segment in India would see a 3 fold increase in the next 10 years.

Curtis J Clawson, president and CEO, Hayes Lemmerz International, US said that the growth of the automotive sector in the country was one of the factors for  investment here.

Fred Bentley, COO and president, Global Wheel Group, Hayes Lemmerz Int. Inc. said that the company was looking to tap the big opportunity presented by the growing auto sector in India. He said that the company would also consider the manufacture of aluminium wheel rims.

Clawson said that aluminium wheels are now limited to high-end passenger cars, which currently have a market share of about 4 percent. He expects the figure to go up to 10 percent in the next 3 years.

The new joint venture facility marks Hayes Lemmerz's pilot foray into the Indian market for passenger car wheel rims.

Kalyani Hayes Lemmerz Ltd set up it's first plant in India at Pune in 1996 for the production of wheel rims for commercial vehicles. The plant has an annual capacity of nearly 10 lakh wheel rims and supplies to Indian commercial vehicle manufacturers like Volvo, Mercedez, Tata, Swaraj, Mahindra Navistar and Vehicle Factory-Jabalpur. The company also produces and exports specialized wheel rims for international OEMs like Daimler of Germany, Volvo of Sweden and Iveco of Italy.

The company plans to increase the installed capacity of the commercial vehicle wheel rim production plant to around 12 lakh wheel rims per year.

Hayes Lemmerz International of the US is the majority share holder in the JV with 85 percent, while Kalyani Group holds 15 percent.

 
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