Carraro Group Doubles Down on India with €350 Million Expansion

Italian automotive components giant, Carraro Group, has unveiled plans to inject a significant €350 million into its Indian operations over the forthcoming five to seven years. This bold move was disclosed after Carraro's Chairman, Enrico Carraro, engaged in high-level discussions with India's Commerce and Industry Minister, Piyush Goyal, during the minister's diplomatic tour of Italy aimed at bolstering bilateral commercial ties.

"We have committed approximately €200 million to date in India, where we now employ 1,600 staff," confirmed Carraro. "The goal is to elevate our investment to €350 million. Essentially, our investment will be at least doubled," he added, emphasizing the company's long-term commitment to India.

The company, listed on the Indian stock exchange, primarily operates out of Pune, Maharashtra. Carraro is set to launch a new manufacturing plant in the region to significantly upscale its production capabilities. "Our new plant in the same area will expand our capacity," outlined Carraro, reinforcing the company's trust in Maharashtra's robust industrial ecosystem.

In tandem with this, Carraro is enhancing its research and development facilities in India, underscoring its commitment to innovation and seamless adaptation to local markets. Supported by a resilient client base, including automotive giants like Mahindra and Mahindra Group, Sonalika, and Escorts, Carraro is poised for accelerated growth within India's burgeoning agricultural and commercial vehicle markets.

Carraro India's CEO, Francesco Sequi, highlighted the substantial growth prospects in India. "Our business here is thriving, supported by a conducive government environment," Sequi stated. Addressing concerns regarding US trade policies, Carraro downplayed the impact of potential tariffs, remarking, "US tariffs are not a threat to our operations."

The chairman remains hopeful for diplomatic resolutions, adding, "I am optimistic that Indian leadership will counteract tariff effects." The investment underlines the deepening economic alliance between India and Italy, coinciding with Minister Goyal's Italian visit to explore further collaborative ventures and persuade Italian firms to bolster their stake in India's manufacturing tradition.

Carraro Group's substantial investment signals robust confidence in India's business landscape, particularly in the automotive components sector—a key beneficiary of the Make in India initiative. This expansion is forecasted to generate additional employment opportunities in Maharashtra, solidifying India's status as a global manufacturing hub. (ANI)

(With inputs from agencies.)