TVS Motors to Ramp up Production in Bengal Unit

TVS Motor Company, which is the third largest two – wheeler manufacturer in the country, said that its proposed operations in the state of West Bengal will most probably be scaled up. The company, which had an initial annual production plan of about 20,000 units of two – wheelers at its Uluberia facility in Howrah, is most likely to expand its production capacities in the comng years, according to Mr. Venu Srinivasan, Chairman and Managing Director, TVS Motors.

“This plant (at Uluberia) will be catering to the eastern parts of the country. We hope to start with 20,000 vehicles a year and then, as the market grows, it will grow,” Mr Srinivasan said, adding that his vision was to increase the production capacities to “a couple of lakhs” in a five-year period.

The Chennai-headquartered Rs 1,633 crore – company had decided in the year 2011 to resume its operations of its franchise – operated motorcycle assembly unit – Mahabharat Motors at Uluberia in the Indian state of Bengal. Mahabharat Motors Manufacturing Company is owned by Mr. Prasun Mukherjee of Universal Success Enterprises.

“We have not come here (in West Bengal) with a small plant in mind, and as the market develops, I am sure that we will require plants in different parts of the country,” Mr Srinivasan said on the sidelines of the closing ceremony of Bengal Leads 2012 – a business-to-business investment summit organized by the State Government.

TVS Motors currently has one manufacturing facility catering the markets to the Northern part of India and two in the states of South India. “For plants in the East and West we are looking at a five year horizon,” he said.

Responding to a query on setting up ancillary units at its Uluberia facility, Mr Srinivasan said, “Once the autos come, ancillaries will follow. But volumes will have to reach the levels first.”

When asked about starting production from its Uluberia unit, Mr Prasun Mukherjee, TVS’s partner in the Bengal project, said that all the necessary clearances have been obtained from the State Government.

The company, he said, was awaiting permission for demerger from the Calcutta High Court in order to start operations.

“We are looking for the High Court to clear the whole thing (demerger process). As far as the Government is concerned, it has given all the clearances,” Mr Mukherjee said.

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