Magna International opens two factories in Sanand, sees strong growth in India

Magna International, North America's largest automotive parts supplier, has started two new greenfield facilities in Sanand to drive its future growth in India.

The $36-billion, Canada-based auto component major aims to use this base to more than double or triple its business in India to almost $450-500 million in the next 3-4 years.

The company on Wednesday inauguarted two facilities for its seating division - Magna Seating, which is part of Magna Automotive India Private Ltd, and Cosma International, which is part of the Magna Group.

India country manager at Magna Intl Deval Desai told ET that the Sanand plant investment shows Magna's commitment to Indian market.

"It supports our current needs, if we need more capacity in the future we may decide to expand. We have ample capacity to support Ford and other OEMs from Sanand. We are positioning ourselves for future growth. India is not only going to make and export, but engineer locally and then export, so that is potent combination."

The Indian operation of Magna is likely to close 2015 with around $130 million in turnover, which is more than double of $55-60 million it posted in 2014.

"In three to four years, our turnover will double if not triple. You look at China market, it was 4 million in 2004, it became 24 million 2014. If you look at what happened, the GDP per capita crossed the 4000 mark, India is at 1650. If you look at the Indian market, it has tripled or quadrupled every 10 years. We see that Indian market will be 12 million by 2030. In the short-tem, the biggest challenge is infrastructure," said Desai.

While Ford, GM and other European customers are strong clients for Magna in India, the company is trying to make stronger inroads with the top two car makers — Maruti SuzukiBSE -0.34 % and Hyundai.

At one of the new Sanand facilities, Magna assembles and provides justin-time delivery of complete seat systems for Ford. The facility is spread over 215,000 sq ft.

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