~ The MoU will facilitate backward integration, increase in capacities for production of cars, engines and transmissions for both captive and non-captive consumption ~

Fiat India Automobiles Private Limited (FIAPL), today signed a Memorandum of Understanding (MoU) with the Government of Maharashtra to enhance the production capacity and for backward integration at its Ranjangaon plant which falls in Taluka Shirur, District Pune. The Government of Maharashtra has taken multiple initiatives to attract more investment in the State and has agreed to provide all the necessary support to the expansion of the project.
Major Highlights:

* FIAPL's Ranjangaon facility to ramp up its operations to produce upto:
1. 2,00,000 cars
2. 3,00,000 engines
3. 3,00,000 parts and accessories

* FIAPL will invest an additional Rs. 2, 341 crores to expand the existing facility over and above the ongoing investment of Rs. 1, 679 crores
* Resulting in total investment of Rs. 4,020 crores
* The plant to provide additional direct employment to 1000 persons at full capacity

Fiat India Automobiles Pvt Ltd, an equal joint venture between Fiat Group Automobiles S.p.A and Tata Motors Limited, is located at Ranjangaon where the company manufactures cars, engines and transmissions both for Fiat and Tata cars. The MoU will be a huge boost to the company as it plans to launch two cars- Linea and Grande Punto later this year which will be manufactured from this facility.

The MoU was signed by Mr. V. K. Jairath, Principal Secretary, Department of Industries, Government of Maharashtra (GoM) and Mr Rajeev Kapoor, CEO, Fiat India Automobiles Private Limited, in the presence of Mr Vilasrao Deshmukh, Hon’ble Chief Minister of Maharashtra, Mr Ashok Chavan, Hon’ble Minister of Industries, GoM, Mr. Johnny Joseph, Chief Secretary, GoM and Mr. Ravi Kant. MD TATA motors Ltd. and Chairman FIAPL.

Mr. Rajeev Kapoor, CEO, Fiat India Automobiles Private Limited said on the occassion, “ The MoU inked with the Govt of Maharashtra is an important step in realising Fiat's expansion plans in India.The MoU will help us meet increased customer demands and simultaneously facilitate backward integration. Fiat as a company has always operated from the State of Maharashtra which has been extremely conducive for our growth. We are sure that same kind of support will be extended to us by the State Government in the future as well.”

Speaking on the occasion, the Maharashtra Chief Minister Mr. Vilasrao Deshmukh said, “The Joint Venture between Fiat Group and Tata Motors has contributed immensely to the development of the region in and around Pune by setting up the plant at Ranjangaon. I am happy to note that FIAPL has planned to bring in fresh investment in its existing plant to increase the manufacturing capacity. The State Government is and will always remain committed to the development of the state and the welfare of its people through provision of employment opportunities and growth.”

Minister for Industries, GoM, Mr. Ashok Chavan said, “Fiat was one of the first auto companies to enter India and has been close to the state ever since. Now, with major restructuring and expansion plans, Fiat has again chosen the state as the investment destination. I think this speaks volumes about Maharshtra's potential as a top investment destination.”

Mr. Johnny Joseph, Chief Secretary, Government of Maharashtra expressed his view saying, “ The State Government is committed to attract more investment and regain the top state position in the country once again. This MoU is a step in that direction.”

Mr V K Jairath, Principal Secretary, Department of Industries also added, “ We wish all the success to Fiat India Autombiles Private Limited and committ ourselves to extend whole-hearted support in every possible way to the project and its expansion.”

The MoU will also aid in the production of the 1.3 multijet engine which was recently launched by the company in its product offering the Palio Stile.

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• Filed Under: Fiat, Tata