Argentum Motors owned by Ashish Deora - news

Argentum motors of Ashish Deora – A Mumbai Based Entrepreneur

Argentum Motors to Expand Capacity to Produce 0.4 Million Small Cars
03/7/2008
Argentum Motors is set to expand its capacity for small cars to 0.4 million per annum. Argentum Motors would also start manufacturing 1-2 litre engines to cater to the demand for small cars. The company is creating flexibility at plant to suit a larger range of vehicles. Existing facility, which can produce engines in the size of 1.3-1.7 litre, is being expanded for 1-2 litre. The company was also setting up a new paint shop and an assembly line which would have a capacity of 0.25 million-0.3 million cars per annum at an investment of INR 5,000 million.
Argentum Motors to Infuse $126 Million in Indian Daewoo Facility
12/26/2007
Argentum Motors will infuse INR 5 billion ( $126.8 million) to modernise the facility over the next 18 months as it gears up to host global commercial vehicle maker Daimler for the latter's proposed Low Cost Vehicle (LCV) roll out.
http://investing.businessweek.com/businessweek/research/stocks/private/snapshot.asp?privcapId=20407418

Argentum Motors to manufacture commercial vehicles and cars

New Delhi: Former president of Hyundai Motors India, BVR Subbu, who is now director of Argentum Motors said that the revival of the Surajpur plant was almost complete and the company is also looking at contract and joint manufacturing of commercial vehicles and cars.The Surajpur facility would soon begin producing components by the start of the next financial year.
Argentum Motors,a company floated by Mr.B.V.R Subbu, Ajay Singh of Spice Jet and India Online Network's Ashish Deora took possession of the Daewoo motor's plant at Surajpur (Haryana). Originally set up by Daewoo to produce engines, gear boxes and body parts, the 210 acre facility is the third largest automobile manufacturing factory in India.
The facility is equipped to produce 4 lakh engines,4 lakh gear boxes and 2 lakh car bodies at its press shop.
Rumours regarding Argentum's future plans with reference to partnerships for contracts and joint manufacturing have been doing their rounds. Subbu admitted that Argentum Motors has been attracting the interest of international original equipment manufacturers and that the company is in talks with many of them.
There have been reports that the French car manufacturing major, PSA Peugeot Citroen is exploring the possibility of a global component sourcing joint venture with Argentum. Subbu, however, did not comment on any specific deals.
It has also been rumoured that the upcoming Daimler-Hero CV venture is believed to be looking at Argentum for its LCV foray.
It has also been reported that Argentum is in talks with a number of commercial vehicle manufacturers including Swedish truck maker Scania and DAF Trucks NV to manufacture commercial vehicles.
http://machinist.in/index.php?option=com_content&task=view&id=914&Itemid=2

Related news items
· Argentum Motors acquires controlling stake in Heuliez (19/08/2008)
· Argentum Motors to showcase electric hybrid car at the Paris Motor Show (26/05/2008)
· Argentum Engineering Design signs MOU with Dassault Systemes (15/04/2008)
· Argentum Motors all set to commence operations in April (12/04/2008)
· Yamaha and Mitsui establish new motorcycle manufacturing company in India (06/03/2008)
· Peugeot in talks with Argentum Motors to start a JV (12/02/2008)
· Argentum going ahead with the modernization of Daewoo facility (29/12/2007)
· Argentum motors to start contract manufacturing in Haryana


Argentum to expand capacity to produce 4 lakh small cars
Co also setting up new paint shop, assembly line at Rs 500-cr investment
Priyanka Vyas
New Delhi, March 7 In a short span after Argentum Motors acquired the production facility of erstwhile Daewoo Motors, the company is set to expand its capacity for small cars to 4 lakh per annum. Argentum Motors would also start manufacturing 1-2 litre engines to cater to the demand for small cars.
“We are creating flexibility at our plant to suit a larger range of vehicles. Our existing facility, which can produce engines in the size of 1.3-1.7 litre, is being expanded for 1-2 litre,” said Mr Ajay Singh, Chairman, Argentum Motors.
He said that the company was also setting up a new paint shop and an assembly line which would have a capacity of 2.5 lakh-3 lakh cars per annum at an investment of Rs 500 crore.
“The new capacity would be in addition to our existing one, allowing us to produce 4 lakh small cars per annum,” said Mr Singh. The company had earlier said that the plant had a capacity to produce 2 lakh car bodies, 4 lakh engines, 4 lakh gear boxes and 35,000 aluminium die casting division per annum.
On the company’s interest to manufacture Nano in response to Mr Ratan Tata’s statements about Tata Motors open for licensed manufacturing of the car, Mr Singh said, “We have no intention of making the Nano because of lower margins. But it has led to the whole world looking at India as a hub for small cars. So we are essentially looking at OEMs who would like to outsource manufacturing to India for their global operations.”
Initially, the company expects to commence its component business by May with exports mainly to the European market. Eventually it intends to contract manufacture cars.
“We are in the final stages of negotiation for manufacturing of components which would start by May. While we are talking to both European and American OEMs, our exports are likely to be to Europe,” he added. In the first year of operations, the company plans to utilise 25 per cent of its production capacity.
Regarding the company’s plans for contract manufacturing for commercial vehicles, Mr Singh said, “We are talking to commercial vehicle manufacturers for helping us build bodies and other parts for this segment of vehicles. This includes CV companies who are looking to enter India with their products as well as those who already have a presence.” The company is promoted by former Hyundai President Mr B. V. R Subbu; Director promoter of SpiceJet Mr Ajay Singh; and Mr Ashish Deora.
http://www.thehindubusinessline.com/2008/03/08/stories/2008030850730300.htm


Argentum plans R&D hub for global product development work
Priyanka Vyas
New Delhi, March 20 Argentum Motors, the company formed after taking over the erstwhile facility of Daewoo Motors, has a game plan beyond just contract manufacturing of cars and commercial vehicles.
Promoted by the former Hyundai President, Mr B.V.R. Subbu, Director Promoter of SpiceJet, Mr Ajay Singh, and Mr Ashish Deora, Argentum plans to turn the existing R&D facility in the premises into a hub for global product development work. It is planning to offer the unit to global car makers who are seeking to drive down costs in their home countries.
“Daewoo’s research and development facility has all the tools and testing equipment, which global OEMs (original equipment manufacturers) can avail of as they shift their development work to India to reduce costs,” said Mr Singh, Chairman of Argentum Motors, to Business Line.
He said the OEMs could also utilise the test tracks which Daewoo had built for their vehicle testing requirement. Alternatively, Argentum Motors is also chalking out a strategy by talking to global vehicle certification agencies who could establish their facilities here to facilitate the exports of certain components and products.
Export standards
Currently, agencies such as the Vehicle Certification Agency, and TUV of Germany already have a presence in the country.
This makes it easier for companies to get their product approved in terms of meeting emission standards and other regulations in those countries while exporting.
“We are in talks with vehicle certification agencies that can approve specific products getting exported to those markets. Collaboration with such agencies would also make it easier for auto and component makers who plan to export from India to those countries,” explained Mr Singh, declining to comment on the specific agencies that the company was in discussion with.
Reducing costs
Global car-makers like Hyundai, General Motors, Nissan-Renault are already expanding their development and engineering work out of India.
Argentum’s plan would be more beneficial to companies who are exploring opportunities to start their development work in India and export their vehicles at a reduced cost.
“This will be the biggest facility in this part of the world. So a lot of global companies can avail the facility at roughly one-third the cost, instead of sending their vehicles to western markets for certification,” said a Society of Indian Automobile Manufacturers spokesperson.
Argentum has a capacity to manufacture 4 lakh engines, 4 lakh gear boxes and 35,000 aluminium die casting divisions per annum. It plans to contract manufacture four lakh small cars
http://www.thehindubusinessline.com/2008/03/21/stories/2008032151150300.htm


Auto majors eye sourcing pact with Argentum
MUMBAI: A couple of European and Asian auto majors including Peugeot-Citroen of France are in talks with Argentum Motors to manufacture components and cars, it is reliably learnt. The partnership will involve joint sourcing for domestic and global requirements and assembly operations. Argentum Motors was set up by Hyundai Motors India former president BVR Subbu, SpiceJet promoter Ajay Singh and broadband entrepreneur Ashish Deora. Argentum Motors had acquired Surajpur-based Daewoo facility for Rs 765 crore late last year. The company is now equipped to produce 4 lakh engines, 4 lakh gear boxes and 35,000 aluminium die casting division per annum. It has a press shop to produce body parts, moulding machines to make plastic parts, a paint shop and a captive power plant.
Mr Subbu is the CEO while Mr Singh is the chairman of Argentum. When contacted, Mr Subbu refused to share details. “We are in talks with a number of companies,” he said. German and Asian auto firms which do not have a manufacturing base in India plan to take advantage of low production costs. The plant will manufacture engines and transmissions for international original equipment manufacturers and also act as a contract manufacturer or a third party assembly centre for cars and commercial vehicles. The plant is expected to begin production by April. “Our immediate concern right now is to get the component plant started,” said Mr Subbu. Daewoo Motors India closed down its facility in 2001, after it ran into creditor problems. The plant manufactured Cielo, Matiz and Nexia cars and produced engines, gear boxes and body parts. The Daewoo manufacturing facility in India is the third largest after Maruti Suzuki and Hyundai. Argentum is also planning to invest around Rs 500 crore to upgrade the facility. The three promoters of the company will eventually hold around 12% in the company after the debt is converted into equity and fresh investors are roped in. “This capacity will attract a large number of global auto manufacturers as the company has all the building blocks for integrated car and component manufacturing,” said an analyst of a Mumbai-based brokerage.

http://economictimes.indiatimes.com/News/News_By_Industry/Auto/Auto_Components/Auto_majors_eye_sourcing_pact_with_Argentum/rssarticleshow/2762786.cms


BVR Subbu's Argentum Motors Raises $50 Million In Private Equity
Sahad P V
Argentum Motors, a company floated by BVR Subbu, former president of Hyundai Motors India, and others like SpiceJet promoter Ajay Singh and broadband entrepreneur Ashish Deora, has raised Rs 200 crore from a group of private equity and hedge funds such as D E Shaw, South Africa's Rand-owned fund Satwa (based out of Hong Kong), and Infrastructure Leasing and Financial Services Ltd (IL&FS). According to Business Standard, the investors would pick up 10 per cent in Argentum Motors. The same investors have also provided a loan of Rs 100 crore to the company.Argentum had taken over the Daewoo Motors India factory near Delhi, which had closed down four years ago, for Rs 800 crore. They plan to set up a huge auto ancillary facility and also function as a third-party manufacturer for auto companies. It will be focus on international auto companies to begin with, and later will take on work from domestic auto manufacturers too. The company is also looking for a fresh investment of Rs 500 crore to upgrade the facility and would be looking at more investors, the report adds. The three promoters of the company will eventually hold around 12 per cent in the company after the debt is converted into equity.Meanwhile, another automotive executive, Jagdish Khattar, is believed to be contemplating a chain of service centres which will service cars irrespective of who the manufacturer is. The outgoing CEO of India's largest car maker Maruti Suzuki is believed to be courting investors for the proposed venture. Any takers?

http://www.vccircle.com/2007/11/21/bvr-subbus-argentum-motors-raises-50-million-in-private-equity/

Argentum to expand capacity to produce 4 lakh small cars
New Delhi, In a short span after Argentum Motors acquired the production facility of erstwhile Daewoo Motors, the company is set to expand its capacity for small cars to 4 lakh per annum. Argentum Motors would also start manufacturing 1-2 litre engines to cater to the demand for small cars. ?We are creating flexibility at our plant to suit a larger range of vehicles. Our existing facility, which can produce engines in the size of 1.3-1.7 litre, is being expanded for 1-2 litre,? said Mr Ajay Singh, Chairman, Argentum Motors. He said that the company was also setting up a new paint shop and an assembly line which would have a capacity of 2.5 lakh-3 lakh cars per annum at an investment of Rs 500 crore. ?The new capacity would be in addition to our existing one, allowing us to produce 4 lakh small cars per annum,? said Mr Singh. The company had earlier said that the plant had a capacity to produce 2 lakh car bodies, 4 lakh engines, 4 lakh gear boxes and 35,000 aluminium die casting division per annum. On the company?s interest to manufacture Nano in response to Mr Ratan Tata?s statements about Tata Motors open for licensed manufacturing of the car, Mr Singh said, ?We have no intention of making the Nano because of lower margins. But it has led to the whole world looking at India as a hub for small cars. So we are essentially looking at OEMs who would like to outsource manufacturing to India for their global operations.? Initially, the company expects to commence its component business by May with exports mainly to the European market. Eventually it intends to contract manufacture cars. ?We are in the final stages of negotiation for manufacturing of components which would start by May. While we are talking to both European and American OEMs, our exports are likely to be to Europe,? he added. In the first year of operations, the company plans to utilise 25 per cent of its production capacity. Regarding the company?s plans for contract manufacturing for commercial vehicles, Mr Singh said, ?We are talking to commercial vehicle manufacturers for helping us build bodies and other parts for this segment of vehicles. This includes CV companies who are looking to enter India with their products as well as those who already have a presence.? The company is promoted by former Hyundai President Mr B. V. R Subbu; Director promoter of SpiceJet Mr Ajay Singh; and Mr Ashish Deora.

http://www.indiacar.net/news/n77296.htm
Argentum gets Rs 200 crore for 10%

D E Shaw, Rand Corporation and IL&F) have collectively bought 10 per cent for Rs 200 crore in Argentum Motors, the company floated by B V R Subbu, former president of Hyundai Motors India, Ajay Singh, promoter of budget airline Spicejet, and Ashish Deora, who runs a broadband company, reports BS. Argentum took over Daewoo's India plant and is planning to set up one of the country s largest auto ancillary units and function as a third-party manufacturer for auto companies....
http://www.inveslogic.com/sectors/directory/deal-street-india/941766

Now, contract manufacturing in auto sector
Sindhu Bhattacharya
Till now, contract manufacturing has largely been associated with either the fast moving consumer goods industry or some other small daily use items. But for the first time, such a facility is being readied for automobiles in India.
Argentum Motors, co-promoted by Spice Jet's Ajay Singh, Hyundai Motor' former president B V R Subbu and Ashish Deora, plans to get into the contract manufacturing business soon.
Argentum has taken possession of the erstwhile Daewoo Motors plant at Surajpur (Haryana) and plans to assemble cars, LCVs and other vehicles some months down the line.
This facility was acquired for about Rs 850 crore and the company now plans to invest another Rs 500 crore in upgrade facilities.
"OEMs are looking at low-cost manufacturing options and many of them are hesitant to set up full-scale manufacturing facilities in India," Singh said.
"So, offering them a third-party manufacturing option is a good way of attracting them here," he told DNA Money.
While Singh declined to name which global OEMs were in discussions with Argentum, he said the contract manufacturing route could be used for all kinds of vehicles, not just cars.
The facility, before being used by Daewoo for small cars, was manufacturing trucks for the DCM-Toyota combine, so the possibility of Surajpur churning out commercial vehicles with global brands cannot be ruled out. As of now, the facility houses a 4 lakh unit engine and transmission capacity and a 2 lakh unit press facility. Daewoo used this facility to produce its Matiz, Cielo and Nexia models.
Singh said Argentum would also be looking to become a component, engine and transmission systems supplier to domestic as well as foreign companies.
He said private equity funds have already picked up 10 per cent of the company and their share would increase to 12 per cent over time. But the Rs 500 crore required for long-term investment would have to be mopped up through a mixture of debt and equity.
Asked about Hyderabad-based MLR Motors, which was earlier supposed to source engines and transmissions from the Surajpur facility, Singh said there was no connection between Argentum and MLR as of now.
Subbu, who was earlier the chairman of MLR Motors, is believed to have severed connections with that company now.
http://sify.com/finance/fullstory.php?id=14564473

Argentum Motors into buying frenzie
For now, the biggest potential player in assembly sub-contracting is Argentum
Motors. The company, founded by former Hyundai India President BVR Subbu, Ajay Singh of SpiceJet, and Ashish Deora of India Online Network, made its intentions clear in February 2007 with a Rs 850 crore buyout of Daewoo’s Surajpur plant. It has since committed another Rs 500 crore towards developing a paint shop, a weld shop and an assembly line capable of handling multiple car and light commercial vehicle projects.
"Sub-contracting can provide new entrants in India with a manufacturing facility that gives them the same cost structure as a Maruti, Hyundai or Tata Motors," says Subbu, who is a Director at Argentum. Expectedly, the arithmetic is crucial to bagging deals. At current costs and price structures, an OEM needs to clock 400,000 units before it can break even.
In India, this can take eight years. "If a player sets up a truck manufacturing and assembly facility today, it would take at least six years to break even," feels Subbu. But with a contract manufacturer, an OEM can start making money by the time it sells 100,000 units in just above two years, he adds. More importantly, such an arrangement enables an auto player to focus on the local market—and sell cars.
http://business.outlookindia.com/inner.aspx?articleid=1115&editionid=33&catgid=44&subcatgid=570


PE, hedge funds bought 10% stake in Argentum
by www.indiape.com
Leading private equity and hedge funds D E Shaw, Rand Corporation of South Africa-promoted proprietary fund Satwa based in Hong Kong and Infrastructure Leasing and Financial Services Ltd (IL&FS) have collectively bought 10 per cent in Argentum Motors.
Argentum Motors is a company floated by B V R Subbu, former president of Hyundai Motors India, Ajay Singh, promoter of budget airline Spicejet, and Ashish Deora, who runs a broadband company.

The company took over the Daewoo Motors India factory near Delhi, which shut shop four years ago, for Rs 800 crore and is planning to set up one of the country’s largest auto ancillary units and function as a third-party manufacturer for auto companies.

The three funds have collectively forked out Rs 200 crore for the 10 per cent stake and have also provided the company a loan worth Rs 100 crore.

Confirming the development Singh said: “The three promoters will eventually hold around 12 per cent in the company after the debt is converted into equity.”

Singh added that the company is already in talks with manufacturers for long- term contracts.

The company is also looking for a fresh investment of Rs 500 crore to upgrade the facility and might look at more equity investors to finance the project.

“At the moment our focus is to work for international auto companies but we might consider domestic players looking for outsourcing later,” Singh said.

Argentum has acquired an engine and transmission plant with a capacity of 40,000 annually, a press factory with a capacity to service 200,000 cars, an aluminum die casting unit to handle 17,500 tonnes of castings, a 40 Mw plant, plastic shop, an assembly line to make 250,000 cars annually (and a research and development centre plus land for development.
Source: Business Standard
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