Peugeot’s India HQ in Prahladnagar!
First auto giant to set up national head office in Gujarat; Sanand plant’s launch date unclear.
In what may come as a big boost to Gujarat’s aspirations of becoming the auto hub of India, French carmaker PSA Peugeot Citroen is shifting its Indian base to Ahmedabad.
Europe’s second largest car manufacturer will open its new head office at Prahladnagar area of the city, on Wednesday.
The company has shifted its Indian headquarters from Mumbai to Ahmedabad even before its car plant in Sanand is ready. Gujarat, which is on its way to become the auto hub of the country gets first head office of an automobile manufacturing company.
As a part of deal with Gujarat government, Peugeot is setting up its head office in Ahmedabad.
On September 1, 2011, the French car maker, signed contract with Gujarat government to set up its car plant in Sanand. During the deal, it had been agreed upon that Peugeot will set up its head office in Ahmedabad.
With an investment of Rs4,000 crore, company wants to commence its plant in 2014 with an initial capacity of 1.70 lakh units, which can be later increased to more than 3.40 lakh units.
The plant which is spread in 584 acres area is estimated to employ 5,000 people, directly and indirectly.
“On February 1, we are opening our new head office in Prahladnagar area of Ahmedabad. As of now, a team of up to 20 men have already started working in new office. Very soon, in phases, we will completely close our Mumbai office and shift to Ahmedabad. By April or May 2012, we may have employee strength of up to 150 in the head office in Ahmedabad,” said an official of PSA Peugeot Citroen.
The official further said that setting up head office in Ahmedabad was part of agreement which company had signed with Gujarat government in September, 2011. Talking about impact of European meltdown delaying company's Gujarat plans, the official said that company had never announced schedule of its Sanand plant. "As of now, it is difficult to predict whether plan will get delayed," said official.Even the state government seems unaware about whether Peugeot is delaying its plant in Gujarat. "We haven't heard of any delay from Peugeot's side," said a state government official.