Ashok Minda Group to invest Rs 125 cr in Uzbekistan

Ashok Minda Group, Delhi-based auto component maker, is planning to invest $25 million or Rs 125 crore to set up a new manufacturing facility in Uzbekistan. The new facility will help to reach and provide instruments for cars to Russian and CIS markets. The company will set up facility in other bigger markets like China and Brazil. The group chairman said that first phase of production in the proposed plant will start from July this year. The raw material for the Uzbekistan plant will be shipped from India to control input costs as key inputs like steel and plastic cost much less in India compared to overseas locations, said Mr Minda. He added that they were targeting sales of around Rs 150 crore from the Russian markets in 2010. Sourcing raw materials from India would help us increase our profit margins and control quality. Half of the group's total turnover of Rs 1,600 crore came from overseas operations.