New horizon: The Jamshedpur plant of Tata Motors. Picture by Bhola Prasad

Jamshedpur, Dec. 20: Automobile major Tata Motors is planning to go the Pantnagar way to improve vendor base at its mother plant in Jamshedpur.

Prasann K. Chobe, who recently took over as plant head here, said the company had earmarked 25 acres in Jojobera, 2km from the steel city, for the purpose.

“We want to adopt the Pantnagar model for developing vendor base, which is weak in Jamshedpur. A weak vendor base leads to logistic problems and that is what we wish to overcome. At Pantnagar, the vendor base is about 92 per cent. If things move in right earnest, we will like to achieve the same in this city in the next two years,” he told The Telegraph.

Notably, Chobe had been instrumental in setting up the Pantnagar plant in Uttarakhand in just 11 months. Before Jamshedpur, he was posted as plant head there. The Singur stalemate had forced the automobile giant to move production of the Nano, the common man’s dream car, to its Pantnagar plant in August 2008.

Chobe revealed that the company would create facilities for vendors in Jojobera, which is at least 13km closer than the current ancillary base in Adityapur. “The land is being developed and will be ready in another six months,” he said.

Elaborating further, he said vendors supplying key items like starters and alternators would be given space to set up shops. Frequent bandhs, strikes and festivals hinder supply of key items and proprietory products, which in turn hamper production. Sometimes the company is required to order key auto accessories through airfreight, which is a costly affair. He admitted that the company was operating at 75 per cent of its capacity due to logistic problems.

The senior executive of the company also explained that profitability and employment opportunities were expected to grow by 30 per cent once the vendors set up shops at the proposed location in Jojobera.

But he made it clear that in no way the local vendors would get affected. “Our priority is aimed at promoting local vendors. We have recently constituted a team of engineers that visits ancillary units in Adityapur industrial area, giving vendors necessary suggestions for improving quality and reducing costs,” he said.

Notably, the 400 ancillary units of Tata Motors based in Adityapur industrial area, 15km from the steel city, cater to about 35 per cent requirements. For the rest, including special items and proprietory products, the company has to depend on vendors based in Pune, Chennai and other parts of the country.

Setting up a vendor facility near the production unit will save both time and cost, Chobe summed it up.