APPL Industries Ltd., a leading compounder of engineering thermoplastics in India, is setting up two more plants in India to meet rising demand from an upcoming automotive hub in west India and an existing hub in the south.
“We have already taken land in Gujarat [province] and the plant would likely be operational by end of 2012. The plant would cater to OEMs like Maruti, Hyundai, Ford, Honda, Tata & GM,” APPL President Chirag Bhavsar said recently at Automotive Plastics India in Mumbai.
The Gujarat plant will have initial capacity of 44 million pounds, which the firm plans to increase to 132 million pounds as demand warrants.
APPL offers pre-colored, advanced compounds based on polypropylene, nylon, polybutylene terephthalate, polycarbonate, ABS and styrene acrylonitrile. The compounds have automotive applications in bumpers, trims, pillars and under-the-hood components.
“We are also setting up a plant at Housar by 2013 with a capacity of [44 million pounds] annually to cater to the southern auto hub,” which hosts OEMs like Ford, Hyundai, Renault and Nissan, said Bhavsar.
Currently, APPL serves automotive business centers with six plants with 141 million pounds of total annual capacity. Because of increasing demand in the auto industry, the company is boosting capacity at a number of plants, aiming for total annual capacity of 220 million pounds, he said. Its various sites supply Rier 1 suppliers of major automakers.
The company also plans to introduce new compounds designed to reduce weight and add value for the automotive, electrical and appliance industries, Bhavsar said.