| C. P. Raman in Calcutta on Friday. A Telegraph picture
Calcutta, April 25: TVS Motor Company (TVS) is planning two new plants, one in Karnataka and the other in south-east Asia, at a combined investment of Rs 750 crore.
Company president C. P. Raman told The Telegraph that the unit planned in Karnataka might cost Rs 500 crore to set up, while the one being set up abroad could require half that sum.
TVS, he said, has asked the Karnataka government to allot land. “The investment in the new plant will be made in a phased manner, over the next five years. But the plan can only be concretised once we get licences and the plot from the Karnataka government. The planned facility will house an assembly line for three-wheelers, a business the company is keen to embark on.
TVS, which has a factory each in Hosur and Mysore, said the south-east Asian venture could take a little longer to come up since it has not found a country of choice.
“We are looking at the possibility of setting up the plant in Indonesia, Thailand or Vietnam. Since the plan is still at a nascent stage, we need more time before we give the project a final shape,” Raman said. All the same, an internal team is working on the project, and chances are that work will start in a year.
TVS, the third largest player in the domestic two-wheeler market, is also going ahead with a plan to introduce five new models during the current financial year in order to grab a bigger market share. Of the five, Raman said three models would be new, with a power of 100-150 cc; the other two would be upgraded versions.
“At least four new models will be launched in the first six months of the current financial year,” Raman said.
TVS sees bikes, sales of which grew 19.5 per cent last year, as the driving force. The company has decided to cut down moped output because of poor demand as well as pressure from low-priced motorcycles. It aims at a 15 per cent growth in its top line this year.
An outlay of Rs 200 crore has been earmarked for investment over three years in a demand-fuelled capacity expansion. The focus is on exports and 20 countries that could lap up the company’s products are on the radar.