Caparo arm acquires Steel Tubes of India

24 August 2006

Mumbai: Caparo Engineering India Private Limited (CEPIL), a subsidiary of NRI industrialist Lord Swraj Paul's Caparo group, has acquired Steel Tubes of India Limited.

The Dewas-based company, with annual turnover of Rs200 crore, is located close to Caparo's stamping plant at Pithampur and will henceforth be known as Caparo Tubes India.

Caparo plans to expand the company's operations at Dewas and double tube making capacity from 50,000 tonnes to 100,000 tonnes per annum, said Angad Paul, chief executive of the group.

The group is a leading manufacturer of ERW tube and hollow sections with manufacturing facilities in the US and the UK. Caparo has proven technical excellence in tube making. Worldwide, Caparo produces one million tonnes of tube, structural hollow sections and merchant bar per year.

Caparo set up base in India in 1994 with a joint venture with Maruti Udyog Limited. The company, known as Caparo Maruti Limited, manufactures automotive body panels at its facility in Gurgaon (Haryana).

In 2002 CEIPL built its first stamping plant at Pithampur and has since expanded its business with stamping units at Greater Noida and Halol, in Gujarat and a fastener manufacturing unit in Chopanki, in Rajasthan. Two new stamping plants are under construction at Pune and Jamshedpur.