The Hindu Business Line : Die-casting plant planned at Pune

The RSB group is firming up plans for a backward integration process into the aluminum die-casting business, as part of its plan to position itself as an integrated, one-stop supplier to the global auto industry.

Top company sources told Business Line that the company would invest over Rs 30 crore to set up an aluminum die-casting plant at Pune with capacities of 5,000-7,000 tonnes a year. The plant is expected to be operational 14 months from now.

"Global customers today look for single-point sources for all their component needs and with global sourcing from India at a high, it is in our interest to position ourselves as a one-point source for everything in this space," Mr Sanjay Chadda, Group Vice-President, International Business, told Business Line.The company currently buys its casting from outside sources and the move to set up captive capacities could reduce both costs and time taken to market them. The move will also allow them increased presence in the global automotive marketplace.

Per capita consumption of aluminium in the country is at 0.75 kg per person in comparison to 29 kg/pp in the US and 33 kg/pp in Japan, thus presenting a captive market for RSB, which will also get access to the global market place with its new business.

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