Hyderabad: Lite Auto Components Pvt Ltd, a part of Hindustan Magnesium Products Pvt Ltd, is all set to invest Rs 500 crore in setting up a plant to manufacture magnesium-based auto components in Andhra Pradesh.
The plant is expected to create 1800-2000 direct and indirect jobs and will cater to the domestic as well as exports market. APEDB officials said the auto components player has sought around 15 acres of land, for which the government has identified land parcels in Nellore and Chittoor.
The company inked an MoU with the Andhra Pradesh Economic Development Board (APEDB) in Vijayawada on Tuesday. This MoU was signed by APEDB CEO J Krishna Kishore and Hindustan Magnesium Products Pvt Ltd managing director Bala Anand Jeldi.
“Stringent emission control norms, coupled with CAFÉ (corporate average fuel economy) norms in India and globally are driving automobile manufacturers through the world. This investment is a step in the right direction for AP to look at light weight alternatives to replace steel and aluminium,” said Bala Anand Jeldi.
Pointing out that auto and auto components is a thrust area for AP, APEDB CEO J Krishna Kishore said: “With rising global standards for greater fuel economy, automakers are shifting to light weight magnesium as it delivers higher performance, requires far less energy and makes the final product vastly superior, such investments provide fillip to the innovation ecosystem in AP.”
AP has already drawn investments to the tune of $4.5 billion into the auto sector from players such as Kia Motors, Isuzu, Hero Motors, Rockman Industries, Ashok Leyland and Bharat Forge, APEDB said in a release.