March 8, 2007: Aiming at bringing aircraft manufacturers to India, Caparo India, part of the Caparo Group owned by Lord Swraj Paul, is keen on entering the aerospace sector in a big way. Focusing on the automotive sector, the company is eying aerospace customers by exporting to them.

According to the company, Caparo India’s ultimate goal is to bring aeroplane manufacturers to India. A memorandum of understanding (MoU) was signed to this effect with the Tamil Nadu government for setting up a new project in Oragadam. The project would involve a cost of Rs 300 crore, a report said.

The company plans to use its knowledge base for both automobile and aerospace sectors, using Caparo technology. With a turnover of 50:50 on both sectors, the company has only small numbers in production in the aerospace segment. Its high value contributed towards the turnover to the extent of 50 per cent, the report added. The company will now concentrate more on aerospace, it is learnt.

Caparo will invest Rs 300 crore in the first phase for manufacturing tubular parts for automotive and aerospace, automotive braking systems, fasteners and composite materials and testing at the Oragadam unit, a report quoting a senior company official said.

Meanwhile, it may be noted that this will be Caparo's second project in Tamil Nadu. It already has an auto components plant at Sriperumbudur at a cost of Rs 400 crore. Production here is expected to start next month, a report added.