Groupe PSA and AVTEC Ltd (a CK Birla Group Co.) recently hosted the inauguration ceremony of their greenfield plant in Hosur, Tamil Nadu. This marks the formal start of industrial set up of this site, which will manufacture and supply technologically advanced and eco-friendly powertrain for the Global and Domestic Automotive market, in-line with the future industry norms and customer expectations. The historic ceremony has been graced by Carlos Tavares, Chairman of the Managing Board, Groupe PSA and CK Birla, Chairman, the CK Birla Group.

The initial manufacturing capacity of this state-of-the-art plant will be about 300,000 units per year for the transmissions and 200,000 units for the BS-VI compliant engines. The manufacturing set up has been completed in a record time of less than two years. The plant will manufacture gearboxes in Phase I to support both the India project as well as supplying Groupe PSA needs. The peak investment in this manufacturing set up would go up to Rs. 600 Crore (circa 73 M€) and it will generate a direct employment of around 800 people. Additionally, the performance of the industrial set-up will be supported by a significant level of localization to reach the necessary cost competitiveness.

(Continued on the next page)