Valeo’s Sanand plant to make thermal products for Ford India

Valeo India, a subsidiary of the euro 12 billion French manufacturer of automotive components, has officially inaugurated its Sanand plant on January 30.

The company, which has spent close to euro 13.3 million (Rs 100 crore) on this greenfield facility (excluding land costs), built this facility in a record 10 month. It will manufacture a range of thermal products from its global portfolio for Ford India, which has its production plant nearby.

Bought from GIDC, Valeo’s Sanand plot is spread across a massive 60,400 square metres, of which the current facility is built upon 4400 square metres leaving massive scope for expansion. The plant will roll out radiators, charge air controllers, fan systems, and condensers will be added later in 2015. 

Company officials say that while the facility will see 60 percent capacity utilisation only by supplying to Ford India later this year, they will also consider supplying to other OEMs such as Maruti Suzuki, which has recently laid the foundation stone for its Gujarat plant. Further, to utilise its production capacity at Sanand, the company will also consider exports to Valeo global in the coming times.

Talking to Autocar Professional, Dominic Savio, business head and general manager, thermal systems, Valeo India, said: “While mass production of components will begin by mid-2015, this facility will provide employment to nearly 225 people under its first phase.”

The company had already rolled out products under its production trial run (300 units of each – radiator systems, fan systems and charge air coolers) in December last year.

The company expects to break even on this plant by 2016-17. Valeo’s global CEO, Jacques Ashenbroich, who also was present at the inauguration event, said “My association with India is for more than 20 years and I have seen the automotive market growing here. Sanand is our sixth facility in India and we are committed to the customers here. We continue to bring products from our global portfolio and in line with that, we will also bring products from our portfolio of comfort and driving assistance systems in the near future.”