Denso to set up new plant for small motors in Haryana, targets OEMs in North India

May 7: Eyeing new business opportunities as a result of increasing vehicle production in India, Japanese component manufacturer Denso is to build a new manufacturing facility in Jhajjar, Haryana.

The new plant, being set up with an investment of Rs 270 crore, will produce small motors for products such as windshield wipers, power windows and engine cooling modules.

Denso Haryana Pvt Ltd’s Jhajjar plant will employ about 450 people. Construction of the new unit, which will be located on a 73,000 square- metre site and with a total floor area of 12,000 square metres, begins this month. Start of production is slated for July 2013.

Commenting on the development, Michio Adachi, Denso’s executive director in charge of the Powertrain Control Systems Business Group, said: “As India is one of our most important markets with a high growth potential, the new manufacturing facility will enhance our current production capacity and help better serve our customers in India. The new facility will supply products mainly to customers that have production bases in Northern India, including Maruti Suzuki and Tata Motors and other automakers.”

The Society of Indian Automobile Manufacturers (SIAM) estimates that India’s vehicle production will reach 6.5 million units in fiscal 2015, up from 3.7 million units in fiscal 2010.

Denso’s Indian operations began in 1984 and it now has six subsidiaries including four production companies, which produce automotive air- conditioning systems, fuel injectors, engine ECUs, starters, alternators and other devices. In March 2012, Denso set up a technical centre in Gurgaon, its sixth technology development base in the world. The company employs more than 2,400 people in India.