Caparo Spink Wade to invest Rs 1,000 crore in 5 years

NEW DELHI: Caparo Spink Wade International today said it will invest over Rs 1,000 crore in the next five years to set up high-end mattress manufacturing plants and spread operations in India.

The firm is a newly formed joint venture between Caparo India, Harrison Spinks and Wade Group of UK with Caparo holding 51 per cent stake while Harrison Spinks and Wade Group having 24.5 per cent each.

Angad Paul, who is the Chairman of Caparo India, will be Chairman of the joint venture.

"Initially we will set up a plant at Bawal in Haryana. We believe the market (in India) will sustain a big growth. We have earmarked Rs 1,000 crore to set up this plant and for our future expansion in the next five years," Pauld told reporters here.

For the first plant in Haryana, the firm is likely to invest four to five million pounds (around Rs 40 crore), another company official said.

The Bawal plant is expected to start production in the next 9-12 months.

Asked about the future manufacturing locations, Paul said: "We are present across the country. We are in South and the West, we have the ability to expand to these locations."

The company will start selling high-end spring mattress in the Indian market by initially importing from the UK.

The JV will launch the spring mattress in India in a phased manner with distribution network to be set up in metros first and gradually expand pan India in the second phase.

"We have come together and put the project forward. We have come together with an idea to make a product for India and make a product for the world market," Paul said.

Besides the domestic market, Caparo Spink Wade International is also looking to export to the Middle East and South East Asian countries.