TVS Motor Company, the third largest two-wheeler manufacturer in the country, on Saturday said that its proposed operations in West Bengal may be scaled up. The company, which had an initial annual production plan of about 20,000 two-wheelers at its Uluberia facility in Howrah, is likely to expand production capacities in the years to come, 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 in 2011 decided to resume operations of its franchise-operated motorcycle assembly unit — Mahabharat Motors — at Uluberia in Bengal. Mahabharat Motors Manufacturing Company is owned by Mr Prasun Mukherjee of Universal Success Enterprises.
“We have not come here (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 organised by the State Government.
TVS has one manufacturing facility catering to markets in North India and two in South India. “For plants in the East and West we are looking at a five-year horizon,” he said.
Demerger Process
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.”
Asked about starting production from its Uluberia unit, Mr Prasun Mukherjee – TVS's partner in the Bengal project — said that all 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.