Swraj Paul to invest 100 mn pounds in India
NRI industrialist Lord Swraj Paul has said his company Caparo group would invest 100 million pounds in India.india Updated: Mar 20, 2006 18:21 IST
Noting that India is going to be a big manufacturing hub, NRI industrialist Lord Swraj Paul has said his company Caparo group would invest 100 million pounds in building up to five new plants in the country.
"I've been saying for 25 years that India is going to be a big manufacturing country and it is now coming true," Lord Paul, British ambassador for overseas business, said in an interview published in The Financial Times on Monday.
"Caparo, which hopes to earn a profit of 40 million pounds this year, aims to invest its cash in India over the next five years in building up to five new plants on top of the four it already operates in the country.
"The aim is to expand Caparo's sales in India from 25 million pounds last year to up to 130 million pounds in 2008 and, in the process, to boost employment in its India plants - which mainly make car parts - from 1,000 to 2,800," the Caparo chairman said.
The company had made an operating profit of 28.4 million pounds in 2005 on sales of 694 million pounds, as against an operating profit of 49.3 million pounds in 2004 - a 48 per cent fall. "This year Caparo is hoping to see operating profit recover to up to 40 million pounds on sales that would stay roughly constant.
"We had a marvellous year in 2004 and last year was not so good," Lord Paul said.
Of Caparo's total sales last year, the UK accounted for just under a half and the US about a third with continental Europe comprising about 15 per cent.