TVS Motor Company is planning to set up a new engine manufacturing plant in Himachal Pradesh with an investment of about Rs.150 crore. It will be the company’s second manufacturing plant in the State.
“We are planning to invest Rs.150 crore in Himachal Pradesh for setting up a new engine plant. We have already submitted application to the government for the facility,” said TVS Motor Company director R. Ramakrishnan.
The company plans to construct the new facility on 50 acres near its existing unit in Nalagarh in Solan district. Earlier in 2007, the company started operation of its first manufacturing unit in the State to cater to the northern and central parts of India. With the latest proposal, planned new investment, the total investment made by the company in the State would be around Rs.270 crore.
ADVERTISEMENT
Apart from the new engine plant, the company is planning to double the manufacturing capacity of its existing plant within one year. At present,
TVS Motor makes around three lakh units of two-wheelers such as TVS Star City, TVS Sport, TVS Jupiter and Moped in the Nalagarh plant.
“We are getting tremendous support form the HP Government. We have applied for 50 acres of land, and expect to get clearance for the new facility soon,” said Mr. Ramakrishnan after meeting Himachal Pradesh Chief Minister Virbhadra Singh here.
ADVERTISEMENT
Mr. Virbhadra Singh, who visited Bengaluru to woo investors to his State, had offered 24 hours uninterrupted power to industries setting up facility in the State.
According to the company official, around Rs.900 crore of its overall revenue is from the sales of two-wheelers manufactured in Himachal Pradesh. Apart from the Himachal plant, the company has manufacturing facilities in Mysore and Hosur.
In October, two-wheeler sales of the company grew by 22 per cent to 2.32 lakh units while the two wheeler exports increased by 65.3 per cent to 27,696 units.