Liteauto GmbH Plans To Invest Rs 1500 Crores In Telangana

0
395

Estimated Reading Time: 2 minutes

Liteauto GmbH plans to invest Rs 1500 crores in Telangana to establish a manufacturing unit. The company signed an MoU with the state government in the presence of Industries Principal Secretary Jayesh Ranjan and IT and Industries Minister KT Rama Rao. The new facility will employ around 9000 people.

Liteauto GmbH is a German company that specializes in manufacturing magnesium products used in vehicles. The company is making magnesium for the Telangana government for some time now which was shipped to Germany for research and development.

Company Managing Director, J Balanand, said, “It is a happy moment for the company. This is the result of continuous work done in three years in Telangana and also 15 years of research and development. Our products have been tested and tried in space and defence technologies as well.”

“Magnesium is the lightest of all structural materials. It is lighter than aluminium by 40 per cent and almost 80 per cent lighter than steel. It replaces and equals the strength of both steel and aluminium. However, the technology is extremely difficult and you can count on your fingertips the number of companies dealing with magnesium technologies,” he said. “With demand rising, Liteauto had to quickly come up with scalable plans. We have a Euro 600 million (Rs 5,088 crore) investment plan over five years and of that Euro, 180 million to 200 million (about Rs 1,526 crore to Rs 1,695 crore) has been earmarked for India investments and all of that is likely to be invested in Telangana,” he said.

ALSO READ  MoHI Installs 532 EV Charging Stations Under Phase-I & II Of The FAME India Scheme

J Balanand added, “Telangana, though the youngest State in the country, has got marquee names, got strategies and investor-friendly policies. Its Minister sending a corporate jet to get investments is no ordinary thinking. This approach has been taken note of by our German team and we want such an aggressive and supportive government for our investment of Euro 200 million in two phases. The response was quick from the government. We recently succeeded in getting a supplier quote from BMW. The advanced prototypes of the products we would supply have been made in Telangana.”

“Liteauto set up its headquarters in Munich. The first customer for us was one of the biggest companies. It was Rheinmetall. It further supported significantly by infusing capital for product development, which they are launching next year. I am proud to say that almost all the prototypes, which were tested by the German giant, were made in Telangana. Every week we have a shipment going from Telangana to Germany for advanced testing,” he said.

ALSO READ  Bajaj Auto To Sell Chetak Electric Scooter From 75 Locations During FY22

“The automotive sector is seeing a change from using fossil fuels to battery systems. For battery vehicles, the structures have to be the lightest possible for them to be range and energy-efficient. For hydrogen cell vehicles too, a similar thing applies. Magnesium has taken a central position in the automotive segment. One of its clients committed Euro one billion 100 (Rs 8,480 crore) of contracts and also advised it to take over three major plants,” he stated.

In the past 18 months, Liteauto GmbH has received orders worth Rs 18658 crores from various clients. The demand has increased for magnesium products in the last 1 year.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.