Financial Daily from THE HINDU group of publications
Saturday, Dec 13, 2003

News
Features
Stocks
Port Info
Archives

Group Sites

Industry & Economy - Automobile Components


Waiting for Volkswagen in Vizag

Ch. R.S. Sarma

Visakhapatnam , Dec. 12

THE small-scale and medium-scale automotive units here are gearing up for the arrival of Volkswagen, amid speculation that the German major has almost cleared the proposal to set up a Rs 1,700-crore plant and that only a formal announcement is yet to be made.

However, there is no official statement yet on the issue either from the State Government or the company.

The enthusiasm of the local entrepreneurs over the proposed plant was evident on Friday on the second day of a two-day vendor development meet organised by the Confederation of Indian Industry (CII).

The delegates discussed ways and means to make use of the great opportunity likely to be thrown up by the entry of the company.

"It would be the best thing to have happened to Visakhapatnam after the setting up of the steel plant and it will really galvanise the local industry,'' said Mr Shekhar Movva, Managing Director of Synergies Dooray Automotive Ltd, a company in the Special Economic Zone which manufactures and exports aluminium alloy wheels for vehicles.

He suggested that the local auto component manufacturers identify their competencies and develop common testing facilities to measure up to the quality standards of Volkswagen.

"The boom in the auto components segment is likely to continue for quite sometime and so we must rise to the occasion.''

Mr B.C. Varma, Deputy General Manager (Development and Certification), Mahindra and Mahindra, said that it was quite possible that Volkawagen too might develop its own vendor base in India at a later stage, while importing the parts initially, as Suzuki did in the case of Maruti.

"Local units should prepare themselves. It will stand them in good stead, as the segment is really booming now,'' he added.

The local units have been advised by the experts to upgrade their quality standards and obtain ISO-9001 certification as a preliminary.

Article E-Mail :: Comment :: Syndication

Stories in this Section
Govt-industry tie spurs R&D for CFC substitutes


Canada relaxes immigration norms
Good ride for cars in Nov; sales up 41 pc
Industrial growth slips to 5.4 per cent in Oct
Air quality improver
Fertiliser cos join hands to talk terms with Petronet LNG
PM visualises a single currency for S. Asia
India may benefit from proposed EU licensing norms
India must improve infrastructure, cut red tape, says LG executive
BPCL moves to sell products thru e-choupal network
Bed of gases
Hydrogen fuel vehicle prototype by 2006: Naik
Pharma sector can double market size in 7 yrs, says Ranbaxy CEO
`US plan to cut tariff may push steel prices up'
KVIC hikes honey production target to 70,000 tonnes
Tansidco setting up estates to boost tiny units
SSI Bill likely in Budget session
MK varsity debars students
Rs 7.5-cr scheme to provide quality education to children in Karnataka
CNBC biz school quiz show
Waiting for Volkswagen in Vizag
Allow Iranian banks to open in India: CII
Government commissions study on nanotechnology
Science Centre planned in Vijayawada
`Ink makers must focus on new products'
`Food packaging industry must get its act together'
A `clean' chit for Semmipalayam village
Youth summit to begin tomorrow at Hyderabad
UK envoy seeks more Indian investments
Asian markets tough nuts to crack, say biz bosses
`Industrial engineering has key role in current scenario'
World Bank to host development event in Delhi
Kerala bags two FICCI tourism awards
Telecom engineer sentenced


The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | Home |

Copyright 2003, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line