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Rajkot-based Nano vendors to invest Rs 45 cr at Sanand by October

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Two Rajkot based auto components suppliers to the Tata Nano will move to the vendor park at the Tata Motors plant site by October this year. Amul Industries and Bhavani Industries together will invest to the tune of Rs 45 crore at the site. Of around 60 vendors in all, around 20 have started work on their facilities at the site.

Both Amul Industries and Bhavani Industries have started the process for shifting from Rajkot to Sanand.

 

“We covered 5 acre land in vendors park near Sanand factory. Company will invest about Rs.15-20 crore to start unit. Our unit will be ready by October this year”, said Suresh Santoki, managing director, Amul Industries Limited that parts of the crank shaft and connecting rods for the Tata Nano.

“Right now we supply 800 pieces of crank shaft and connecting rods and after new unit will fully commence, we will supply 3000 peaces per day", Santoki said. City based Bhavani Industries who supplies engine parts for Nano has also decided to go Sanand. Company’s managing director Himanshu Nandasana said, “We plan to import machines from Germany and France for the new unit and for that we will invests about Rs25 crore. Our unit will be ready by September 2010.” He added, “It makes business sense to move closer as it would help cut logistic and inventory costs.

On the other hand, Bhavnagar based Microsign Products has no plan to shift at Sanand.Microsign Products managing director Nisheeth Mehta said, “Our Bhavnagar based unit is just three hours from the Sanand factory, so we can easily supply our products to them. So we need not to go to vendor park.”

Rajkot is popularly known as an automobile and auto parts hub and it houses 40-50 producers and over 250 sub producers, who work for national and international automobile companies. At present, Rajkot produces more then 300 types of parts for the automobile industry and provides employment to 20,000 people. It also has the advantage of quality production and comparatively lower cost of production.