September 10, 2007 -- US Component maker Federal-Mogul Corporation, which has filed for Chapter 11 bankruptcy that allows a sick company to reorganise, is looking at setting up a greenfield facility in Chennai for manufacturing friction seals for brakes and clutches.
Federal-Mogul Corporation (FMC) and two of its subsidiaries - Federal-Mogul Luxembourg and Federal-Mogul Holdings - are waiting for government approvals to set up a new wholly-owned subsidiary for manufacturing, distribution and sale of sealing products and gaskets in India. Industry sources said the Chennai greenfield plant is likely to be floated under this new subsidiary. Overall, the company is looking at an initial investment of Rs 60 crore, which will be ramped up within three years for the new venture.
Federal-Mogul Goetze India managing director Arun Anand declined to comment. However, auto component industry sources believe that the company is aggressively looking at both organic and inorganic growth opportunities in India.
The auto parts maker already has six joint ventures operational India with different auto component companies for different products. Last year, Federal-Mogul bought 50.1% stake in Goetze India, which manufactures pistons and piston rings. FMC holds about 6% stake each in Anand Automotive group company Gabriel India and Anand Engine Components. Federal-Mogul Corporation also holds 30% in Amalgamations Group company, India Pistons.
The Michigan-based component maker also has a wholly-owned company which is engaged in the business of spark plugs and wiper blades with independent manufacturing unit located at Bhiwadi, Alwar.
Source: The Economic Times
