Carraro Group plans to increase investment in India to Euro 350 million over next 5-7 years

Milan [Italy], June 4 (ANI): Italian automotive components manufacturer Carraro Group announced ambitious expansion plans for India. It will commit to investing Euro 350 million over the next five to seven years, nearly doubling its current investment base.

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The announcement came after Carraro Group Chairman Enrico Carraro met with India's Commerce and Industry Minister Piyush Goyal during the minister's official visit to Italy to strengthen bilateral trade and investment ties.

"We have invested around 200 million euros in India and currently employ 1,600 people. We want to increase our investment to 350 million euros in the next 5-7 years," Carraro told reporters.

"We will invest at least double what we are investing now."

The Italian company, which is listed on the Indian stock market, operates its primary manufacturing facility in Pune, Maharashtra. As part of its expansion strategy, Carraro plans to establish a new plant in the same area to increase production capacity significantly.

"We are coming with a new plant in the same area to expand our capacity," Carraro explained, highlighting the company's confidence in Maharashtra's industrial ecosystem.

The group is also strengthening its research and development capabilities in India, reflecting its commitment to innovation and local market adaptation.

Carraro's expansion plans are backed by a robust client portfolio in India's automotive sector. The company serves major Indian manufacturers, including Mahindra and Mahindra Group, Sonalika, and Escorts, positioning it well for continued growth in the country's expanding agricultural and commercial vehicle markets.

Francesco Sequi, CEO of Carraro India, emphasised the significant growth potential in the Indian market. "Investing in India has seen large growth for our business. Our business in India has a big space to grow. The Indian government is very helpful," Sequi said.

Addressing potential concerns about US trade policies, Carraro downplayed the impact of potential tariffs on the company's operations. "US tariffs are not a concern today. Our export to the US from India is not large, so it will not affect us," the chairman stated.

He expressed optimism about diplomatic solutions, adding, "I am hopeful that Indian leadership will minimise the tariff impact."

The investment announcement underscores the growing economic partnership between India and Italy. Minister Goyal's visit to Italy aims to explore new avenues for collaboration and encourage Italian companies to increase their investments in India's manufacturing sector.

Carraro Group's commitment represents a significant vote of confidence in India's business environment and manufacturing capabilities, particularly in the automotive components sector, which has been a key beneficiary of the government's Make in India initiative.

The expansion is expected to create additional employment opportunities in Maharashtra and contribute to India's position as a global manufacturing hub for automotive components. (ANI)

(The story has come from a syndicated feed and has not been edited by the Tribune Staff.)