Chennai/New Delhi: Three companies will invest a total of Rs 9,150 crore in Tamil Nadu. The companies today signed the agreements with the industry department in the presence of the Chief Minister, Ms J. Jayalalithaa.
Ashok Leyland-Nissan Motor Company will invest Rs 4,150 crore in plants in Hosur, Pillaipakkam, Ennore, Velli Vaayalsavadi and Oragadam. Mr R. Seshasayee, Executive Vice-Chairman of the company, along with Mr Yuuji Tsukagoshi, Chairman, were present during the occassion, says a State government press release.
Daimler India Commercial Vehicle Pvt Ltd signed an agreement to increase the invest in its plant in Oragadam to Rs 4,000 crore. The company's CEO and Managing Director, Mr Marc Llistosella, was present during the signing of the agrement.
The third agreement was by India Yamaha Motor Ltd to invest Rs 1,500 crore in a Vallam Vadakal Sipcot Industrial. Its CEO and Managing Director, Mr Hiroyuki Suzuki, and the Deputy Managing Director, Mr Riyuju Kawashima, were present during the signing of the agreement.
This plant is expected to have a major focus on the export markets.
Mr Hiroyuki Suzuki, CEO and Managing Director, India Yamaha Motor, said, “This is in line with Yamaha Motor Corp’s medium-term management plans of enhancing local production levels to meet the demand growth in emerging markets such as India and their export markets.”
He added, “The Indian two-wheeler industry has witnessed much growth in the last few years, attributable to increased disposable income levels among a rapidly expanding middle class.”
Initially, the new factory will employ 1,800 people and have an annual production capacity of 4 lakh units at the start of operations. The capacity will reach 1.8 million units annually by 2018, at which time it will employ around 6,500 people.
In all, Yamaha will have a 2.8 million unit capacity by 2018, inclusive of its bike plant at Surajpur, Uttar Pradesh, where capacity was recently increased from 6 lakh to one million on a Rs 750 crore investment. It has another plant for two-wheeler parts at Faridabad, Haryana.
The new Chennai Factory will be the first in the Yamaha Motor group to have a vendor park in its nearby vicinity, thus enabling complete synchronization of external supplier parts production as well. This system will reduce losses in the areas of production management and distribution, the company said.
Yamaha looks to sell 2 million units and achieve a 10 per cent market share by 2016, by which time the two wheeler market is expected to touch 20 million units. Among its main challengers in India will be incumbents Hero MotoCorp and Bajaj Auto, apart from the fast growing Honda.
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