RPG Group plans Rs1,050 crore investments in Gujarat
15 Jan 2009
The RP Goenka Group companies have signed memoranda of understanding (MoUs) covering investments to the tune of Rs1,050 crore with the Gujarat government. The MoUs were signed during the 'Fourth Vibrant Gujarat Global Investors Summit 2009'.
RPG Enterprises group companies CEAT, Raychem RPG, RPG Life Sciences and RPG Cables signed MoUs for various projects in the state.
CEAT, the flagship company of the RPG group, has proposed investments of Rs700 crore to set up a radial tyre plant at Halol. The plant will manufacture radials for trucks, buses, light trucks and passenger cars. Starting with initial production of about 100-150 tonnes, output will be scaled up to 500-550 tonnes in subsequent phases. Out of the production, 25-40 per cent will be exported.
Raychem RPG proposes to set up two projects covering power transformers and industrial enclosures, with total investment of Rs150 crore.
RPG Life Sciences, which has formulation facilities and biotech bulk drug facilities in Gujarat, plans to invest Rs100 crore in enhancing and creating multi purpose facilities over the next 3-5 years in both the facilities.
One of the formulation facilities caters to the global generic business. The other formulation factory manufactures formulation and caters to domestic and export customers. The biotech bulk drug factory manufactures critical life saving anti-cancer and immunosuppressant bulk drugs through the biotechnology route.
This is a very high technology area and RPG Life Sciences is the only manufacturers of such products in the country.
In addition to these projects, RPG Cables will also be setting up a power plant near Baroda at an investment of Rs100 crore.
The fourth `Vibrant Gujarat Global Investor's Summit' organised by the government of Gujarat, brought together business leaders, investors, corporations, thought leaders, policy and opinion makers.
While Gujarat has always been focused on industrial growth, the summit served as a perfect platform to understand and explore business opportunities in the state, said Harish Goenka, chairman of the RPG Group.
''We have chosen to increase our investments in Gujarat substantially because we believe the state is friendly to investors and the business community. Gujarat combines in itself the best of tradition and modernity. It is also committed to rapid economic growth, clocking a growth rate of 10-12 per cent for the past five years and leading the industrialisation rankings. For a group like RPG, this signifies a perfect fit,'' said Goenka.
The RPG Group's existing investments in Gujarat include a Phillips Carbon Black Limited (PCBL) plant in Mundra and RPG Life Sciences plant at Ankleshwar.