With Tata Motors formally announcing its plans to relocate the Nano project to Saanand in Gujarat, vendors suppliers to the project welcomed the move adding that it will help them plan ahead. Despite apprehensions that some component makers may back out of the project due to low margins and losses incurred in Singur, the industry displayed solidarity in relocating to the western state.
“We are all set to follow Tata to Gujarat,” said Arvind Kapur, Managing Director, Rico Auto Industries.
“I think it is the right move and a timely one as it will now allow us to plan ahead. The uncertainty had to end soon. For now we will supply components from our facility in Gurgaon till our plant in Gujarat is not ready.”
Like Tata Motors, vendors are also in favour of moving on from Singur. “Whatever happened in Singur was unfortunate and unexpected,,” said Ramesh Suri, Chairman, Subros Ltd.
“I have not spoken to the company officials on Gujarat, but it is good that the car is ready for roll out. We are looking forward to the new plant.” Component makers also said that Gujarat’s track record on industrialisation and Narendra Modi’s leadership may have tilted the scales in its favour.
“Gujarat is a highly industrialised state and its track record on garnering and protecting investments are significant,” Kapur said. “Narendra Modi’s leadership is another positive aspect.”