Indian auto-component industry has opened up held back investments and some are expediting new investments in additional capacity as the automotive market shows signs of buoyancy on new demand.
Companies like Lumax, Varroc, JBM Group, C K Birla Group amongst others have lined up fresh investment to the tune of over RS 5,000 crore (See table.) A significant part of this is getting into fresh capacities and large part to be ready for the new regulations on safety and emission. Nishant Arya, executive director, JBM Group said the company has brought forward by 6 months expediting investments in a couple of new facilities. A key supplier to Maruti Suzuki, JBM Group plans to invest Rs 1,000 crore over four years for capacity expansion and new businesses. Aurangabad-based Varroc Group plans to invest over Rs 600 crore per annum in the same period to build scale and invest in emission technology and new generation lighting systems. The C K Birla-owned NBC Bearing will be inves Rs 750 crore, part of which will going into its new plant in Savli, Gujarat.