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Home arrow News arrow Auto component arrow Lucas-TVS to invest up to Rs.400 crore on Expansion in next 2-3 years
Lucas-TVS to invest up to Rs.400 crore on Expansion in next 2-3 years Print E-mail
Written by Ramanathan   
Saturday, 08 September 2007
New Delhi: Lucas TVS, the joint venture between TVS and Lucas of the UK, will invest up to Rs. 400 crore by next two-three years for expanding capacity as it seeks to double its turnover.

“We will invest up to Rs. 400 crore over the next two-three years in R&D, manufacturing and capacity building,” said Arvind Balaji, Vice- President (Business Planning) Lucas-TVS , part-owned by the TVS Group, which makes auto parts and two-wheelers. “We are looking to double our turnover to Rs2,000 crore by 2010,” said N. Ravichandran, president, operations, of Lucas-TVS. “We are open to acquisitions in the auto electricals space. But, simultaneously, we are expanding our manufacturing capacity as well as R&D efforts,” he said. However, he didn’t say how exactly the company was going to raise the money to finance this expansion.

The company already has plants at Chennai, Pondicherry, Rewari in Haryana, Chakan, Uttaranchal and one in Iran. TVS Motors has already set up a manufacturing facility in Indonesia. Lucas-TVS plans to eventually set up shop in Indonesia as well since sister company TVS has already established a manufacturing presence there. Lucas-TVS is about to set up a plant in Singur to supply parts to Tata Motors for its Rs. 1 lakh car. The company has started production in the Iran plant through a joint venture with an investment of Rs. 16 crore in which it is the majority partner.

Lucas TVS recently acquired the auto electricals business of Sical Logistics (formerly called Indrad Auto) for over Rs 14.7 crore. Lucas TVS seeks to expand production by 15% every year till 2010.

The company would launch its products in Germany in the next two years. It is targeting a seven-fold increase in exports to Rs700 crore by 2010 as it seeks to reduce its dependence on the Indian market.

“The competition is global,” Ravichandran said. “We are working with some big people in Germany and other countries,” he said.

Overseas sales of Indian parts makers have grown at double-digit rates in the past five years to $2.8 billion (Rs11,480 crore) in 2006-07, according to the Automotive Component Manufacturers Association (ACMA).

Lucas TVS is engaged mainly in the manufacturing of starter motors, alternators and wiper systems. It supplies to original equipment manufacturers such as Maruti, Tata Motors, Mahindra, TVS Motor and Bajaj Auto.
 
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