Valeo India has formally inaugurated a Rs 100 crore factory at Sanand in Gujarat. The total investment does not include land cost but just the building and equipment.

Valeo India, a subsidiary of Valeo of France, has set up a unit at Sanand, which is a fast growing manufacturing hub about 30 km south of Ahmedabad. The thermal power train products factory will make radiators, charge air controllers and fan systems.

The factory at Sanand is Valeo’s sixth factory in India and will supply components to Ford which is setting up a car plant in the vicinity. Around 60 per cent of Valeos’ facility capacity is committed to Ford and its plant is expected to start production within two months.

Valeo India will also approach other OEMs including Suzuki which has started work on a greenfield plant at Sanand. Exports will also help achieve full capacity at the plant which has a furnace to churn out a million units a year. There is scope for expansion at the 15 acre site.