Magna International is considering setting up an integrated manufacturing facility in India for all but one of its 10 business divisions, the exception being car top systems.

The strategy follows a group decision to focus more on India, China and Brazil as revenue from its traditional European and North American markets has been dropping, the Hindhu Business Line reported.

Five Magna business divisions are already in India will soon be followed by others. The paper said the group was looking at different entry options, including acquisitions, after recently acquiring the European operations of interior and exterior plastic components maker Cadence Innovation and hybrid electric and energy management systems specialist BluWav Systems.

Magna executive vice-president Frank O'Brien told Business Line that the company was working on setting up an integrated manufacturing facility considering the vast geography of India and its diversified automaker presence.

He said the integrated facility would function as a mother plant for all business divisions and support satellite units located closer to customers.

Vehicle manufacturers were looking at sourcing components from a supplier supplied to different locations across the globe. "So an integrated facility will help us leverage the overheads," he told the paper. Magna will decide soon on the location for the integrated facility.

According to Business Line, Magna already has in India: Lumax Magna Donnelly, a JV with Lumax Automotive Systems making mirrors; Magna Powertrain, through two JVs with Amtek Auto and Rico Auto, making powertrain components; Magna Steyr Engineering Centre in Pune and the upcoming Cosma International in Pune and Magna Closures in Chennai which are wholly-owned subsidiaries. O'Brien told the paper seating, interiors, exteriors and electronics units will all soon enter India.

Cosma International in Pune will make door systems and other sheet metal components while Magna Closures in Chennai will make window regulators, the report added.

O'Brien was coy about customers but industry sources told Business Line these companies would supply Magna global customers with manufacturing operations in India such as Ford, Volkswagen and General Motors. Both facilities will commence production in 2010.