Lite Auto Components Pvt Ltd. entered into a Memorandum of Understanding (MoU) with the Andhra Pradesh Economic Development Board (APEDB) here on Tuesday.

APEDB Chief Executive Officer Jasti Krishna Kishore and Hindustan Magnesium (parent company of Lite Auto Components Pvt Ltd.) Managing Director Bala Anand Jeldi signed the MoU in the presence of Chief Secretary Anil Chandra Punetha.

The Lite Auto Component is proposing to set up a state-of-the-art manufacturing facility in the State to cater to the Indian market and exports. It will provide employment opportunities to 1, 800 to 2, 000 people.

Thrust area

Mr. Bala Anand Jeldi said that the investment was a step in the right direction for A.P. to look at lightweight alternatives to replace steel and aluminium in the automobile sector. Stringent emission control norms coupled with CAFÉ Corporate Average Fuel Economy (CAFÉ ) norms in India and globally are driving automobile manufacturers throughout the world, he said.

Mr. Krishna Kishore said that manufacturing of auto and auto components was a thrust area for the State. With rising global standards for greater fuel economy, automakers were shifting to lightweight magnesium as it delivers higher performance, requires far less energy and makes the final product vastly superior. Such investments would provide a fillip to the innovation ecosystem in A.P. , he said.