Chennai: Auto component manufacturer Rane Group is setting up a manufacturing facility at Singur to supply auto parts to Tata Motors' people's car, the Nano.
This dedicated facility will provide steering gears, columns and seat belts for Tata Nano.
The facility would come up on five acres of land at the vendor park, adjacent to Tata's plant. The group will invest Rs20 crore for the plant, which will be functional before July 2008.
According to L Ganesh, Rane Group chairman, "Construction of the unit will provide direct employment to 350 people. Three out of the seven group companies will be involved in the project, which will be completed in phases within a year."
Tata Motors is the group's biggest customer, though it has also supplied as an original equipment manufacturers (OEM) to auto makers Mahindra, Ashok Leyland and Maruti.
The company also had a sizable export market mainly in Europe and the US.