Permission has been granted by the West Bengal Industrial Development Corporation Ltd for the demerger of the two-wheeler business of Mahabharat Motors Manufacturing Co into a separate company through the court process of demerger.

The Commerce and Industry Minister of the West Bengal Government, Mr Partha Chaterjee, on Saturday handed over to TVS Motor Company and Mahabharat Motors Manufacturing Company the in-principle permission.

After the demerger, TVS Motor Company will invest in this new venture subject to approval that may be required by law and government regulations.

TVS Motor Company, which had entered into a memorandum of understanding with Mahabharat Motors Manufacturing Co, West Bengal in 2008, will now take a larger role in the demerged company and facilitate stronger presence in the eastern region of the Indian market.

As per the MOU signed in 2008, TVS Motor Co was to provide technical support for the manufacturing facility. In addition, the company was to train personnel as per the quality procedures and standards followed at other assembly plants. The manufacturing facility was created in accordance with the MoU and commercial production commenced in September 2010.

TVS Motor will retain the existing staff and workers of Mahabharat Motors Manufacturing Co. It expects to initially manufacture around 1,000 motorcycles per month. TVS Motor will also use this facility as a hub to service West Bengal and North-East markets.

TVS Motor currently has three manufacturing facilities in Tamil Nadu, Karnataka and Himachal Pradesh to manufacture two and three-wheelers.

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