According to a memorandum of understanding signed with the state government today during Vibrant Gujarat Summit, the operations are likely to commence by 2016.
Amit B Kalyani, Executive Director, Kalyani Group said the setting up of the plant would be in line with Prime Minister Narendra Modi’s ‘Make in India’ vision. “We are confident that given an opportunity we can become the manufacturing hub for the World.”
The Kalyani group has already formed a ‘Make In India’ project team pulling in senior executives to work on an import substitution strategy.
Using available government data, the team is targeting $ 30-40 billion worth of iron and steel products that are imported into India. These products are mainly imported for the defence, energy, automotive, construction and mining equipment industries.
Make in India is a Union government initiative to facilitate investment in manufacturing within the country. The group is undertaking its defence business through its subsidiary Kalyani Strategic Systems. The land at Dholera has been offered by the state government for putting up the plant.
The Kalyani group with an annual turnover of Rs 12,000 crore plans to increase its business three to four times over the next 10 years by embracing Make in India.
Besides the forging and engineering business of its flagship company, Bharat Forge, the group is focussing on the non-automotive segments of the power, railway, aerospace, oil and gas, and defence industries. A large part of this focus will be on defence and aerospace.