New Delhi, Oct. 5: Avtec, a CK Birla group company, will set up an auto component manufacturing unit in Kharagpur at an initial investment of up to Rs 100 crore.

In a bid to strengthen its global presence, Avtec is considering acquisitions and is in discussions with two overseas companies.

Hindustan Motors holds a 49 per cent stake in Avtec, which makes engines and is valued at around Rs 1,000 crore.

“We have three manufacturing facilities in Indore, Hosur and Chennai. Another is being built at Kharagpur, which will probably start operations from the first quarter of 2008,” said Sudhir Rao, CEO of Avtec.

“We will invest Rs 80-100 crore in the first phase of investment,” he said.

The plant will make power transmission components and have an annual capacity of 1.5 lakh sets for cars and 35,000 sets for other vehicles.

Rao said the unit would focus on domestic supplies.

On the company’s acquisition plan, he said, “The companies we are talking to have revenues of about 30-50 million euros.”

A manufacturer of automotive engines, transmissions (automobile and off-highway applications) and precision engineered powertrain components, Avtec had registered net sales of Rs 570 crore in 2006-07.

Avtec’s customers include Ashok Leyland, Bharat Earth Movers Ltd, Caterpillar, Ford, General Motors, Hindustan Motors and Mahindra & Mahindra.