Setco Automotive, the Tier 1 supplier of clutches to leading CV majors, and Lingotes Especiales SA (Lingotes) of Spain have announced the formation of a 30 million euros (Rs 250 crore) joint venture over three years called Lava Cast Pvt Ltd.
02 May 2014 | 5626 Views | By Autocar Pro News Desk
Setco Automotive, the Tier 1 supplier of clutches to leading CV majors, and Lingotes Especiales SA (Lingotes) of Spain have announced the formation of a 30 million euros (Rs 250 crore) joint venture over three years called Lava Cast Pvt Ltd. The JV will focus on developing and manufacturing fully ...
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Setco Automotive, the Tier 1 supplier of clutches to leading CV majors, and Lingotes Especiales SA (Lingotes) of Spain have announced the formation of a 30 million euros (Rs 250 crore) joint venture over three years called Lava Cast Pvt Ltd. The JV will focus on developing and manufacturing fully machined ferrous casting products for the automotive and other industries.
Lava Cast will have equity participation by both companies, with Lingotes Especiales being the technology partner.
“The world-class Lava Cast foundry is the next step in our vision which will make Setco Automotive the preferred OEM supplier/ partner globally. In Lingotes, we found a strategic partner to help us achieve this vision. Bringing over 40 years of experience in the foundry industry and key OEM clients, Lingotes will help us to extend our reach into new customer bases and to build our collective product portfolio in the coming years. The Indian foundry market currently holds great promise and has the potential to emerge as a key global export hub. We are looking to create a niche for ourselves in this market with a world class fully machined casting setup, which will add tremendous value. With the support of Lingotes Especiales, Lava Cast is confident of becoming a reliable company meeting global quality standards. Setco will also offtake the castings for its own captive consumption” said Harish Sheth, chairman and MD, Setco Automotive.
This global alliance between Setco and Lingotes was announced at a function held at the foundry site at Kalol (PMS), Gujarat on yesterday, adjacent to Setco’s current clutch manufacturing operations. The proposed foundry will start commercial production in one year.
According to Vincent Garrido, chairman, Lingotes Especiales, “Setco has a strong presence in India in the clutch business. It enjoys excellent relationships in the sector and has a strong understanding of manufacturing. With Setco, we are confident of creating a reliable supply base of castings for the international market. Geographically, it is located in the power-surplus state of Gujarat, which has access to good ports as well as a good workman culture. We are excited to extend our four decades of manufacturing experience into India. Our longstanding experience in this sector will substantially reduce the uptime of this new project.”
At present, Setco has four manufacturing facilities – two in India and one each in the UK and USA – with its corporate base in Mumbai. While Setco’s major manufacturing is in Kalol, Gujarat, it is expanding its facility in Sitarganj, Uttarakhand. The company, which has an R&D centre in the UK, has also set up a state-of-the-art R&D centre at Kalol to design, develop and validate full clutches systems.
Its Spanish partner Lingotes Especiales SA is dedicated to design, development, casting, machining and assembly of grey and ductile iron components for use in the automotive, electrical appliances and civil engineering industries. Its key customers include automobile manufacturers and Tier 1 companies such as Ford, Volkswagen, Renault, PSA (Peugeot/Citroën), Fiat, Valeo and TRW.
Photograph: Vincent Garrido, chairman, Lingotes Especiales, and Harish Sheth, CMD, Setco Automotive.