KOLKATA: TVS Motor would ramp up its existing operations of manufacturing two-wheelers at Uluberia in Howrah over the next three years, a senior official of the company said.
"We are going to increase production of motorcycles at the Uluberia plant from 1600 units per year to 2.4 lakh units per year over a period of three years", TVS chairman Venu Srinivasan told reporters on the concluding day of Bengal Leads 2012 here today.
He said that total investment would around Rs 400 crore to be spent over three years.
Earlier, TVS had entered into a JV with Mahabharat Motors of Universal Success to manufacture two-wheelers on 44 acres of land.
Srinivasan said that on the remaining 56 acres, the JV would set up an auto ancillary unit.
Talks with vendors were on, he said.
Success in my Habit
Wednesday, January 25, 2012
KTM Duke 200 launched by Bajaj Auto at Rs 1.18 lakh
NEW DELHI: The country's second-largest two-wheeler maker Bajaj Auto on Tuesday launched a sports bike, 'Duke 200', from Austrian partner KTM's portfolio and said it plans to roll out three more products in as many years.
The domestic auto major is looking to strengthen its position as a sportsbike major in partnership with KTM and for this, it is converting its Probiking showrooms selling premium products across the country into KTM outlets.
"The launch of 'Duke' is one of the many steps in our association with KTM over the last five years. Between Bajaj Pulsar and KTM Duke, we intend to further strengthen our position in the sports motorcycle segment in India," Bajaj Auto Ltd (BAL) Managing Director Rajiv Bajaj told reporters here. The company will launch at least one new KTM bike every year in India, he added.
The Duke 200 developed jointly by the two firms has been launched at an introductory price of Rs 1.18 lakh (ex-showroom Delhi). This is the first bike from their collaboration to be launched in India. Last year, a jointly developed 125-cc version of the Duke was launched in Europe.
All the KTM products for India will be assembled locally at BAL's facility in Chakan.
Talking about its future products, KTM Sportsmotorcycle AG Chief Executive Officer Stefan Pierer said: "Next year, we will launch a 350-cc bike and it will be followed by two more bikes in the next three years. So, it will be three bikes in three years."
BAL is already exporting India-assembled KTM bikes. It supplied around 11,000 units of the Duke 125 in 2011. "In a very short span of time, KTM will be the largest premium bike-maker in the world with entry into many mass markets like India and Malaysia. This year, we are expecting to double exports from India," Bajaj said.
KTM, which reported revenues of 526 million euros in 2011, sold over 81,000 units last year, compared to about 2,00,000 units by the world largest premium bike maker Harley Davidson, he added.
Elaborating on the domestic plans, Bajaj said: "Bajaj Auto has decided to sell the Duke through all 32 Probiking showrooms, which have now been transformed into exclusive KTM outlets. Besides, there will be 40 service centres dedicated only for KTM bikes."
As a result, all Bajaj branded products like the Pulsar 220 will no longer be sold at the former Probiking showrooms, but the Ninja models from Kawasaki will continue to be retailed from there, he added.
He said all the products from the foreign partner's stable will continue to be sold under the KTM marque as it is a specialist brand in the sports motorcycle segment.
The domestic auto major is looking to strengthen its position as a sportsbike major in partnership with KTM and for this, it is converting its Probiking showrooms selling premium products across the country into KTM outlets.
"The launch of 'Duke' is one of the many steps in our association with KTM over the last five years. Between Bajaj Pulsar and KTM Duke, we intend to further strengthen our position in the sports motorcycle segment in India," Bajaj Auto Ltd (BAL) Managing Director Rajiv Bajaj told reporters here. The company will launch at least one new KTM bike every year in India, he added.
The Duke 200 developed jointly by the two firms has been launched at an introductory price of Rs 1.18 lakh (ex-showroom Delhi). This is the first bike from their collaboration to be launched in India. Last year, a jointly developed 125-cc version of the Duke was launched in Europe.
All the KTM products for India will be assembled locally at BAL's facility in Chakan.
Talking about its future products, KTM Sportsmotorcycle AG Chief Executive Officer Stefan Pierer said: "Next year, we will launch a 350-cc bike and it will be followed by two more bikes in the next three years. So, it will be three bikes in three years."
BAL is already exporting India-assembled KTM bikes. It supplied around 11,000 units of the Duke 125 in 2011. "In a very short span of time, KTM will be the largest premium bike-maker in the world with entry into many mass markets like India and Malaysia. This year, we are expecting to double exports from India," Bajaj said.
KTM, which reported revenues of 526 million euros in 2011, sold over 81,000 units last year, compared to about 2,00,000 units by the world largest premium bike maker Harley Davidson, he added.
Elaborating on the domestic plans, Bajaj said: "Bajaj Auto has decided to sell the Duke through all 32 Probiking showrooms, which have now been transformed into exclusive KTM outlets. Besides, there will be 40 service centres dedicated only for KTM bikes."
As a result, all Bajaj branded products like the Pulsar 220 will no longer be sold at the former Probiking showrooms, but the Ninja models from Kawasaki will continue to be retailed from there, he added.
He said all the products from the foreign partner's stable will continue to be sold under the KTM marque as it is a specialist brand in the sports motorcycle segment.
KTM Duke 200 launched by Bajaj Auto at Rs 1.18 lakh
NEW DELHI: Bajaj Auto will convert its niche pro-biking stores across India into exclusive KTM stores to sell the newly launched sports bike, Duke 200 that comes at an invitation price of 1.17 lakh (ex-showroom) Delhi.
The country's second-largest two-wheeler maker holds a 40% stake in KTM Power Sports AG, Europe largest sports bike maker, and will distribute the high-end European bikes from existing 34 pro-biking showroom that would be done up with orange KTM livery and six new ones will added in 2012.
Besides, there would be 40 service centers dedicated for KTM bikes. Bajaj would assemble the new bike at its Chakan plant and market it across the country through KTM stores. The bikes can be booked across these outlets and deliveries would start from early February.
"We plan to establish KTM as a sporty motorcycle brand that would offer niche European features to Indian users. Between the Bajaj Pulsar and the KTM Duke, we intend to further strengthen our dominant position in the sports motorcycle segment in India," Bajaj Auto MD Rajiv Bajaj said.
Following the multi-brand concept, Bajaj would continue to sell Kawasaki Ninja bikes through these KTM branded stores, but would shift its high-end bikes like the Pulsar 200 and Avenger cruiser range to regular Bajaj Auto dealerships that sells its other volume bikes.
The country's second-largest two-wheeler maker holds a 40% stake in KTM Power Sports AG, Europe largest sports bike maker, and will distribute the high-end European bikes from existing 34 pro-biking showroom that would be done up with orange KTM livery and six new ones will added in 2012.
Besides, there would be 40 service centers dedicated for KTM bikes. Bajaj would assemble the new bike at its Chakan plant and market it across the country through KTM stores. The bikes can be booked across these outlets and deliveries would start from early February.
"We plan to establish KTM as a sporty motorcycle brand that would offer niche European features to Indian users. Between the Bajaj Pulsar and the KTM Duke, we intend to further strengthen our dominant position in the sports motorcycle segment in India," Bajaj Auto MD Rajiv Bajaj said.
Following the multi-brand concept, Bajaj would continue to sell Kawasaki Ninja bikes through these KTM branded stores, but would shift its high-end bikes like the Pulsar 200 and Avenger cruiser range to regular Bajaj Auto dealerships that sells its other volume bikes.
'World's cheapest car' tag backfires for Tata Nano
NEW DELHI: When Tata Motors launched the Nano in 2009, the concept of the " world's cheapest car" in one of the world's fastest growing auto markets seemed pre-destined for commercial success.
Logically, the strategy appeared faultless -- offering an affordable solution to millions of aspirational lower-middle class Indian families wanting to make the social and practical leap from two wheels to four.
But after several years of disappointing sales, it has now become clear that the snubnosed hatchback's unique selling point -- it's price -- was actually a commercial sticking point.
Rather than embracing the Nano, the status-conscious consumer base that was its prime target has largely shunned the "cheap" tag of the $2,800 vehicle and opted for slightly pricier rivals, or second-hand vehicles costing the same.
"A Nano is always bandied about as a poor man's car. Nobody wants to be caught with it," said Punnoose Tharyan, editor of India's Motown magazine.
Sales are far off the target of 25,000 cars a month, and the Nano plant, with an annual capacity 250,000 units, produces only 10,000 a month, according to R Ramakrishnan, business head of Tata Motors passenger cars.
"The car didn't project the right image," said automobile expert Murad Ali Baig. "Also, for the same cost as the Nano there are quite respectable second-hand cars -- with air conditioning."
The base model, sold without air conditioning which is a disadvantage in India's searing heat, costs 140,880 rupees ($2,800). The premium version -- air conditioning, central locking and power front windows -- is 196,959 rupees.
The Nano ran into trouble from the start when a land acquisition row forced Tata to abandon a nearly completed plant and build another, badly delaying production.
There were also safety concerns after a number of cars burst into flames.
Now Tata Motors, which also produces the British luxury Jaguar and Land Rover brands, has gone into damage control mode.
Tata boss Ratan Tata conceded this month that mistakes had been made, which had fuelled the perception of the Nano as a "poor man's" vehicle.
"Whatever stigma has been attached to it, we will undo," Tata said, insisting that the Nano had always been intended as an "affordable, all-weather, family car."
To get sales on track, Tata has given the car a makeover, making it available in more colours, including "champagne gold" and "papaya orange," and sprucing up the interiors while keeping prices unchanged.
It has also offered a "Tata Nano Happiness Guarantee", which more than doubles the car's warranty to four years from 18 months, and throwing in a maintenance contract for just 99 rupees a month.
It is offering "fast-track" financing for buyers wanting loans to purchase the car -- with loan approvals in 48 hours. Also, buyers can put down just 15,000 rupees ($300) to drive a Nano out of the showroom.
"Let's say at first it moved a little slowly in the market place, but now we have understood what the customer requirements are," said Tata Motors India managing director Prakash Telang.
And Telang remains convinced that the potential Nano market remains as vast as its makers originally predicted.
"Car penetration in India is 10 to 11 per 1,000 people as compared to Western economies where it is as high as about 400 per 1,000 people," Telang said. "The market will continue to grow rapidly."
Typical of the buyers Telang has in mind is Dira Singh, who has a wife and two children and recently upgraded from a motorcycle to a shiny blue Nano.
"The Nano was in my budget. It wasn't costly and that's why I took it," Singh said, standing proudly beside the vehicle. "It will protect my family."
Logically, the strategy appeared faultless -- offering an affordable solution to millions of aspirational lower-middle class Indian families wanting to make the social and practical leap from two wheels to four.
But after several years of disappointing sales, it has now become clear that the snubnosed hatchback's unique selling point -- it's price -- was actually a commercial sticking point.
Rather than embracing the Nano, the status-conscious consumer base that was its prime target has largely shunned the "cheap" tag of the $2,800 vehicle and opted for slightly pricier rivals, or second-hand vehicles costing the same.
"A Nano is always bandied about as a poor man's car. Nobody wants to be caught with it," said Punnoose Tharyan, editor of India's Motown magazine.
Sales are far off the target of 25,000 cars a month, and the Nano plant, with an annual capacity 250,000 units, produces only 10,000 a month, according to R Ramakrishnan, business head of Tata Motors passenger cars.
"The car didn't project the right image," said automobile expert Murad Ali Baig. "Also, for the same cost as the Nano there are quite respectable second-hand cars -- with air conditioning."
The base model, sold without air conditioning which is a disadvantage in India's searing heat, costs 140,880 rupees ($2,800). The premium version -- air conditioning, central locking and power front windows -- is 196,959 rupees.
The Nano ran into trouble from the start when a land acquisition row forced Tata to abandon a nearly completed plant and build another, badly delaying production.
There were also safety concerns after a number of cars burst into flames.
Now Tata Motors, which also produces the British luxury Jaguar and Land Rover brands, has gone into damage control mode.
Tata boss Ratan Tata conceded this month that mistakes had been made, which had fuelled the perception of the Nano as a "poor man's" vehicle.
"Whatever stigma has been attached to it, we will undo," Tata said, insisting that the Nano had always been intended as an "affordable, all-weather, family car."
To get sales on track, Tata has given the car a makeover, making it available in more colours, including "champagne gold" and "papaya orange," and sprucing up the interiors while keeping prices unchanged.
It has also offered a "Tata Nano Happiness Guarantee", which more than doubles the car's warranty to four years from 18 months, and throwing in a maintenance contract for just 99 rupees a month.
It is offering "fast-track" financing for buyers wanting loans to purchase the car -- with loan approvals in 48 hours. Also, buyers can put down just 15,000 rupees ($300) to drive a Nano out of the showroom.
"Let's say at first it moved a little slowly in the market place, but now we have understood what the customer requirements are," said Tata Motors India managing director Prakash Telang.
And Telang remains convinced that the potential Nano market remains as vast as its makers originally predicted.
"Car penetration in India is 10 to 11 per 1,000 people as compared to Western economies where it is as high as about 400 per 1,000 people," Telang said. "The market will continue to grow rapidly."
Typical of the buyers Telang has in mind is Dira Singh, who has a wife and two children and recently upgraded from a motorcycle to a shiny blue Nano.
"The Nano was in my budget. It wasn't costly and that's why I took it," Singh said, standing proudly beside the vehicle. "It will protect my family."
Low-cost amphibian car conceptualised by engg students
NAGAPATTINAM: Engineering students of a university in Thanjavur have designed two types of light weight, eco-friendly and low-cost cars, including an amphibian one capable of travelling on road and floating on water.
While one type of car runs on petrol and LPG, the other one is an electric car operated using a battery tapping solar energy, capable of travelling on road and water.
Two groups of final year engineering students of PRIST University, Thanjavur, have designed the cars in collaboration with Hi-Tech Project Industries, a private Engineering Services company at Tarangambadi in Nagapattinam district.
Both the cars have been fabricated using steel, Aluminium alloys, plastics and other locally available material and cost below Rs 35,000, researchers at Hi-Tech Project Industries, Tarangambadi said.
The electric car was designed by Rajendra Kumar, Nitesh Kumar, Sanjay Kumar, Abhishek Raj, Roopak Kumar, Sanjay Kumar Yadav and Chandrakanth. The car was capable of running on road as well as on water with a slight modification and could carry two persons, researchers said.
When it runs on water, it will act more like a boat. The car can run at a top speed of 30 kmph on road and at 15 kmph on water and is totally eco-friendly, they said.
The 110-CC petrol/LPG car weighing just 135-kg was designed by Alok Kumar, Amith Kumar, Ananth Kumar and Ajay Kumar. The car runs at a top speed of 50 kmph and is very fuel efficient at 65 km per litre of petrol,they claimed. When running on LPG, it gives a mileage of 110 km per kg.
Gear system and suspension mechanism in both the vehicles, had been meticulously designed, said Jayaraj, Murali and Balasundaram, researchers at Hi-Tech Project Industries.
District Collector T Munusamy visited Tarangambadi today and witnessed a demonstration of the cars.
While one type of car runs on petrol and LPG, the other one is an electric car operated using a battery tapping solar energy, capable of travelling on road and water.
Two groups of final year engineering students of PRIST University, Thanjavur, have designed the cars in collaboration with Hi-Tech Project Industries, a private Engineering Services company at Tarangambadi in Nagapattinam district.
Both the cars have been fabricated using steel, Aluminium alloys, plastics and other locally available material and cost below Rs 35,000, researchers at Hi-Tech Project Industries, Tarangambadi said.
The electric car was designed by Rajendra Kumar, Nitesh Kumar, Sanjay Kumar, Abhishek Raj, Roopak Kumar, Sanjay Kumar Yadav and Chandrakanth. The car was capable of running on road as well as on water with a slight modification and could carry two persons, researchers said.
When it runs on water, it will act more like a boat. The car can run at a top speed of 30 kmph on road and at 15 kmph on water and is totally eco-friendly, they said.
The 110-CC petrol/LPG car weighing just 135-kg was designed by Alok Kumar, Amith Kumar, Ananth Kumar and Ajay Kumar. The car runs at a top speed of 50 kmph and is very fuel efficient at 65 km per litre of petrol,they claimed. When running on LPG, it gives a mileage of 110 km per kg.
Gear system and suspension mechanism in both the vehicles, had been meticulously designed, said Jayaraj, Murali and Balasundaram, researchers at Hi-Tech Project Industries.
District Collector T Munusamy visited Tarangambadi today and witnessed a demonstration of the cars.
TVS Motor launches upgraded TVS Star City model
CHENNAI: TVS Motor Company Ltd, which manufactures two- and three-wheelers on Tuesday announced the launch of an upgraded version of its 110cc motorcycle TVS Star City.
In a statement, the company said the model will now be available with executive bike segment features like dual tone body colours, and an all-new stylish headlamp.
The bike will come in six new colour combinations.
"This new motorcycle is a winning combination of executive class features and vibrant styling. The backing of high fuel efficiency and toughness will make TVS Star City a much sought after motorcycle," H.S. Goindi, president - marketing, was quoted in the company statement as saying.
According to TVS Motor, under standard test conditions the model gives a mileage of 83.9 km per litre.
The base version TVS Star City 110cc starts at Rs. 38,650/- (ex Delhi) with a five-year warranty.
In a statement, the company said the model will now be available with executive bike segment features like dual tone body colours, and an all-new stylish headlamp.
The bike will come in six new colour combinations.
"This new motorcycle is a winning combination of executive class features and vibrant styling. The backing of high fuel efficiency and toughness will make TVS Star City a much sought after motorcycle," H.S. Goindi, president - marketing, was quoted in the company statement as saying.
According to TVS Motor, under standard test conditions the model gives a mileage of 83.9 km per litre.
The base version TVS Star City 110cc starts at Rs. 38,650/- (ex Delhi) with a five-year warranty.
Nissan to begin export of Sunny from March
CHENNAI: Japanese automaker Nissan would begin exports of its latest sedan 'Sunny' in March, a top company official said today.
After foraying into Indian market through its completely-built units SUV X-Trail and Teana, Nissan in 2005 inked an agreement with France-automaker Renault to set up a manufacturing unit at an investment of Rs 4,500 crore spread over a period of seven years.
It currently manufactures cars Micra and Sunny from their facility at Oragadam near here which has a capacity of producing two lakh units.
After beginning exports of its first hatchback Micra, Nissan Motor India Managing Director and CEO Kiminobu Tokuyama today said they would be commencing exports of "Sunny".
"We will be exporting Sunny by March-end. Already we were exporting Micra to many countries. Initially, Sunny will be exported to Middle East market, Tokuyama told reporters here.
Currently, Nissan sold 25,000 units of Micra while the Sunny diesel version has got over 4,000 bookings so far, he said.
On their future plans, he said the company would also increase its capacity of the Chennai plant owing to increase in production. "Initially the plant's annual capacity is two lakh units. We will increase it to four lakh units by March..", he said.
Asked whether the company would be required to make additional investments, he said so far Nissan has invested Rs 2,800 Crore at the Chennai facility and this would be sufficient for the plant expansion.
After foraying into Indian market through its completely-built units SUV X-Trail and Teana, Nissan in 2005 inked an agreement with France-automaker Renault to set up a manufacturing unit at an investment of Rs 4,500 crore spread over a period of seven years.
It currently manufactures cars Micra and Sunny from their facility at Oragadam near here which has a capacity of producing two lakh units.
After beginning exports of its first hatchback Micra, Nissan Motor India Managing Director and CEO Kiminobu Tokuyama today said they would be commencing exports of "Sunny".
"We will be exporting Sunny by March-end. Already we were exporting Micra to many countries. Initially, Sunny will be exported to Middle East market, Tokuyama told reporters here.
Currently, Nissan sold 25,000 units of Micra while the Sunny diesel version has got over 4,000 bookings so far, he said.
On their future plans, he said the company would also increase its capacity of the Chennai plant owing to increase in production. "Initially the plant's annual capacity is two lakh units. We will increase it to four lakh units by March..", he said.
Asked whether the company would be required to make additional investments, he said so far Nissan has invested Rs 2,800 Crore at the Chennai facility and this would be sufficient for the plant expansion.
Denso to invest Rs 300 crore for new plant at Gurgaon
EW DELHI: Japan-based auto component maker Denso Corporation plans to invest Rs 300 crore to set up a new manufacturing facility at Gurgaon in Haryana as it looks to augment its production capabilities in India.
The company, which is present in India through its unit 'Denso International India', is also scouting for land in South India to set up a manufacturing plant to cater to the increasing demand.
"About Rs 300 crore will be invested to build a new plant in Gurgaon, Haryana. Denso has already acquired 1.5 lakh sq meter site for this plant, and we are now preparing to start production by the end of 2013," Denso International India Chairman and CFO Yasushi Nei told PTI.
The company would utilise the new plant to produce air- conditioning components like heat exchangers and various kinds of motors, Nei added.
The company has four manufacturing facilities in India. The company which started operations in the country in 1984 with the production of starters and alternators, is now looking to enhance its presence in the country by 2015.
"We will enhance our production, marketing and developing capabilities with a goal to increase fiscal year 2015 sales by 2.5 times the level of fiscal year 2010," Nei said.
The company's investments in the country -- Gurgaon, Bangalore and technical centre -- are all part of its efforts to enhance production capacities in the country, Nei added.
Denso has invested Rs 100 crore in February 2010 in a new plant in Bangalore and is also coming up with a technical centre in Gurgaon at an investment of Rs 150 crore.
Further, the company is also scouting for land in South India to cater to its various customers in the region.
"We are conducting a feasibility study to select a southern area to set up a manufacturing plant. This plant will help us expand customer base in South India," Nei said.
The company has various customers like Toyota, Hyundai and Ford which are based in southern part of the country.
In India, Denso manufactures car air-conditioning systems, radiators and products for two-wheelers such as generators and capacitor discharge ignition systems (CDIs).
Denso, which has technical collaborations with Subros, Pricol and Lucas TVS in India, also plans to add around 600 employees by 2015 to its existing strength of 3000 employees in India.
Globally, the company employs over one lakh employees and has posted net sales of $ 37.7 billion in 2010-11
The company, which is present in India through its unit 'Denso International India', is also scouting for land in South India to set up a manufacturing plant to cater to the increasing demand.
"About Rs 300 crore will be invested to build a new plant in Gurgaon, Haryana. Denso has already acquired 1.5 lakh sq meter site for this plant, and we are now preparing to start production by the end of 2013," Denso International India Chairman and CFO Yasushi Nei told PTI.
The company would utilise the new plant to produce air- conditioning components like heat exchangers and various kinds of motors, Nei added.
The company has four manufacturing facilities in India. The company which started operations in the country in 1984 with the production of starters and alternators, is now looking to enhance its presence in the country by 2015.
"We will enhance our production, marketing and developing capabilities with a goal to increase fiscal year 2015 sales by 2.5 times the level of fiscal year 2010," Nei said.
The company's investments in the country -- Gurgaon, Bangalore and technical centre -- are all part of its efforts to enhance production capacities in the country, Nei added.
Denso has invested Rs 100 crore in February 2010 in a new plant in Bangalore and is also coming up with a technical centre in Gurgaon at an investment of Rs 150 crore.
Further, the company is also scouting for land in South India to cater to its various customers in the region.
"We are conducting a feasibility study to select a southern area to set up a manufacturing plant. This plant will help us expand customer base in South India," Nei said.
The company has various customers like Toyota, Hyundai and Ford which are based in southern part of the country.
In India, Denso manufactures car air-conditioning systems, radiators and products for two-wheelers such as generators and capacitor discharge ignition systems (CDIs).
Denso, which has technical collaborations with Subros, Pricol and Lucas TVS in India, also plans to add around 600 employees by 2015 to its existing strength of 3000 employees in India.
Globally, the company employs over one lakh employees and has posted net sales of $ 37.7 billion in 2010-11
Paracoat Products to achieve sales of Rs 250 crore by 2014
NEW DELHI: Automotive component maker Paracoat Products (PCP) today said it expects to achieve the sales of Rs 250 crore in next two years on back of capacity expansion and entry into new verticals.
"From current sales of Rs 150 crore we expect to reach the sales of Rs 250 crore by 2014," Paracoat Products Director (Business Development) Rajesh Poddar told PTI.
For this, apart from entering new verticals the company will strengthen its noise, vibration, and harshness (NVH) business by opening a new facility for EPP moulding at Ranipet in Tamilnadu and strengthening its Bhiwadi facilities, he added.
Paracoat has also entered into a new vertical of motor home project and has set up a plant near Haridwar in Uttarakhand for assembling PCP Terra Home Cars.
"The company plans to roll out 90 PCP Terra vehicles by the end of FY 2012-13," Poddar said.
PCP Terra motor home cum office is based on a standard pick-up truck, like Mahindra Genio, installed with frame made of fibre glass (FRP) and is fitted with all required facilities for seven persons, the company said.
The Uttarakhand plant has an assembling capacity of 300 PCP Terra home cars in a year and the company plans to expand the capacity.
"We intend to expand our capacity and by 2016 based on the market. We intend to make 500 vehicles by 2016," he added.
On being asked about how the firm is planning to raise the finances for its expansion plans Poddar said: "We plan to raise funds by internal accrual, debt from bank and PE funding".
At a later stage, the company also intends to open Caravan parks across the country through a group firm that will provide parking space to these motor homes.
"From current sales of Rs 150 crore we expect to reach the sales of Rs 250 crore by 2014," Paracoat Products Director (Business Development) Rajesh Poddar told PTI.
For this, apart from entering new verticals the company will strengthen its noise, vibration, and harshness (NVH) business by opening a new facility for EPP moulding at Ranipet in Tamilnadu and strengthening its Bhiwadi facilities, he added.
Paracoat has also entered into a new vertical of motor home project and has set up a plant near Haridwar in Uttarakhand for assembling PCP Terra Home Cars.
"The company plans to roll out 90 PCP Terra vehicles by the end of FY 2012-13," Poddar said.
PCP Terra motor home cum office is based on a standard pick-up truck, like Mahindra Genio, installed with frame made of fibre glass (FRP) and is fitted with all required facilities for seven persons, the company said.
The Uttarakhand plant has an assembling capacity of 300 PCP Terra home cars in a year and the company plans to expand the capacity.
"We intend to expand our capacity and by 2016 based on the market. We intend to make 500 vehicles by 2016," he added.
On being asked about how the firm is planning to raise the finances for its expansion plans Poddar said: "We plan to raise funds by internal accrual, debt from bank and PE funding".
At a later stage, the company also intends to open Caravan parks across the country through a group firm that will provide parking space to these motor homes.
Apollo Tyres fined Rs 30 crore on cartelisation charge in South Africa
NEW DELHI: Apollo Tyres has been been asked to cough up 45 million rands (about Rs 30 crore) as penalty for indulging in cartelisation in South Africa, a dispute which the company said relates to period when the firm was managed by Dunlop.
South African Competition Commission said Apollo Tyres (formerly Dunlop) has admitted that it took part in the tyre manufacturers' cartel and agreed on pricing and price hikes.
"Apollo Tyres has agreed to pay a penalty of R45 million which represents 4.75 per cent of its 2008 total turnover and admits that it was involved in price fixing conduct," the Commission said in its order.
When asked about the allegations, Apollo Tyres said it has agreed to pay up the fine in the interest of shareholders although the period referred to by the Commission belonged to the erstwhile management.
"In the interest of business and its various stakeholders, Apollo Tyres South Africa Pty Ltd (previously Dunlop Tyres International Pty Ltd), has amicably settled allegations of cartelisation by the South African Competition Commission."
"During the period referred to by the Competition Commission, the company was led by the previous management, and a management change took place post the acquisition by Apollo Tyres. The current management had no involvement in, or knowledge of, the anti-competitive conduct identified by the Commission. The company has decided to settle this and move forward in the best interest of all stakeholders," a spokesperson of Apollo Tyres said.
The agreement followed the South African Commission's investigation against South African Tyre Manufacturers Conference (Pty) Ltd (SATMC) and four local tyre manufacturers and suppliers -- Apollo, Goodyear South Africa (Pty) Ltd, Continental Tyre South Africa (Pty) Ltd and Bridgestone South Africa (Pty) Ltd ("Bridgestone").
The Commission had initiated this case following a complaint lodged by a fleet owner, alleging that the local tyre manufacturers simultaneously adjusted their prices around the same time and within the same parameters.
South African Competition Commission said Apollo Tyres (formerly Dunlop) has admitted that it took part in the tyre manufacturers' cartel and agreed on pricing and price hikes.
"Apollo Tyres has agreed to pay a penalty of R45 million which represents 4.75 per cent of its 2008 total turnover and admits that it was involved in price fixing conduct," the Commission said in its order.
When asked about the allegations, Apollo Tyres said it has agreed to pay up the fine in the interest of shareholders although the period referred to by the Commission belonged to the erstwhile management.
"In the interest of business and its various stakeholders, Apollo Tyres South Africa Pty Ltd (previously Dunlop Tyres International Pty Ltd), has amicably settled allegations of cartelisation by the South African Competition Commission."
"During the period referred to by the Competition Commission, the company was led by the previous management, and a management change took place post the acquisition by Apollo Tyres. The current management had no involvement in, or knowledge of, the anti-competitive conduct identified by the Commission. The company has decided to settle this and move forward in the best interest of all stakeholders," a spokesperson of Apollo Tyres said.
The agreement followed the South African Commission's investigation against South African Tyre Manufacturers Conference (Pty) Ltd (SATMC) and four local tyre manufacturers and suppliers -- Apollo, Goodyear South Africa (Pty) Ltd, Continental Tyre South Africa (Pty) Ltd and Bridgestone South Africa (Pty) Ltd ("Bridgestone").
The Commission had initiated this case following a complaint lodged by a fleet owner, alleging that the local tyre manufacturers simultaneously adjusted their prices around the same time and within the same parameters.
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