In the next five years it will add more products and capabilities and at least triple its employment creating value-added jobs for the local community.
Commenting on the occasion, Mr. Harish Sheth, Chairman & Managing Director, Setco Automotive Ltd., said: “We are very excited to have this new facility up and running. Setting up a plant in Uttarakhand was a strategic decision on our part to emphasize our support to our OEM and aftermarket customers. Apart from this because of the benefits offered by the state, our same high quality products will cost less to manufacture, thus allowing us to give more competitive prices to the end user. This will definitely give us a competitive edge in the market. We are committed to the community and are happy to be here.”
Located near Sitarganj, the unit is placed in the rich fertile triad belt, surrounded by lush green fields & forest encompassing wild habitation and is on a 2 acre plot with an investment of Rs. 9 crores. Setco’s new and improved products will be manufactured here to give customers better performance for every rupee spent.”
Further, the setting up of this facility would provide leverage in terms of the reliable supply chain to meet the consumer requirements. The capacities freed at Kalol will be used to produce our new and improved product lines to the OEMs and meet their global requirements. It will also allow us production diversity without losing productivity.
JV with FTE Automotive
In January last, Setco and FTE Automotive GmbH (FTE) of Germany announced a joint venture to manufacture and supply clutch actuation systems in India. FTE Automotive, Germany, is a leading global manufacturer of hydraulic brake & clutch systems for passenger cars and commercial vehicles, with more than 50 per cent market share globally for clutch hydraulic systems.
The JV company will manufacture products such as hydraulic clutch actuation systems and components for passenger cars and commercial vehicles. This strategic combination of global technical proficiency with immense domestic market presence and goodwill will definitely make the JV a dominant player in the automotive market in India.
Mr. Harish Sheth said: “Setco aims at being a full range clutch system manufacturer. This JV will further strengthen our position in the medium and heavy commercial vehicle segment and at the same time help us penetrate the LCV, passenger car and farming equipment segment with new products. This JV is in harmony with our commitment to deliver long term stakeholder value.”
Mr. Klaus Gocker, CEO, FTE Automotive, stated: “Setco is a perfect company to partner with in India. It is a well-managed company, with premium quality products and having deep insight into the emerging needs of the fast evolving Indian Automotive market. The Indian market is growing at a tremendous pace with Indian companies going global and a lot of our global clients are also entering India. Hence, partnering with Setco is definitely an attractive investment in the future.”
This JV will help open new avenues and opportunities for Setco and FTE in the fast moving Indian automotive industry. Automotive & commercial vehicle manufacturers in India have been searching for robust systems and advanced technology; this venture will bring them what they need with a complaint free clutch system. FTE, with its technical expertise & high quality will leverage its attributes by offering local content and ensuring complete comfort to the end-user.
