Tata AutoComp plans to investment Rs 300 crore in FY2010-11

Tata AutoComp Systems (Taco), a Tata group owned company, has planned a heavy investment of Rs 300 crore in the financial year 2010-11 for the construction of new plants along with up-gradation of quality and technology. The company is planning aggressively to capitalize on the ongoing high growth momentum in the Indian auto-industry by concentrating on quality and adoption of new generation technologies, so that it can catch-up with the rising demand of components. The automobile industry of India reported a growth of 30% in the month of May 2010, over the sales of the same period in the last year, which was the best-ever performance in the history of Indian automobile industry.

The component capacities of Taco have been stretched and the company is hoping to resolve the shortages quickly, as per a statement given by Mr RS Thakur, ED and CEO of Taco. The company is constructing five new factories in Sanand, Gujarat where Tata Motors has recently inaugurated a new manufacturing facility for its small car Nano. The Taco group operates in the field of manufacturing, engineering and supply chain management at its 44 production facilities and two engineering centers. The company is also in talks with India's leading car makers (like Maruti Suzuki and Hyundai Motors) for the supply of auto-components for their cars in India. The company is aiming to achieve an annual turnover of Rs 4,200 crore for 2010-11, as against Rs 3,436 crore reported last year.