The Hindu Business Line : Toyota Kirloskar Auto Parts to ramp up capacity

Toyota Kirloskar is a global resource for the International Motor Vehicle project, making and supplying R type manual transmission to seven vehicle assembly plants of Toyota across the world.

Bangalore , May 3

TOYOTA Kirloskar Auto Parts (TKAP) will ramp up its capacity by 40,000 units to 1.6 lakh manual transmission units. The company has notched up Rs 150 crore in revenues for the last fiscal.

According to a TKAP official, the auto parts joint venture company has invested around Rs 32 crore to increase its capacity to 1.6 lakh units, which is also the full capacity of the plant. The company expects to start operating to its full capacity by September 2005.

TKAP has exported manual transmission units worth around Rs 110 crore between July 2004 and March 2005 while its total revenues for the same period was around Rs 150 crore.

In its first full year with the plant operating at full capacity, the company expects to have revenues of between Rs 350 crore and Rs 400 crore.

The ramping up of the capacity will see the number of manual transmission parts being produced go up to 550 units per shift a day from 400 units per day.

The plant employs two shifts a day. The ramp up has been made possible with the addition of one more line of machinery. TKAP will also increase the production of axles and propeller shafts to 180 units per shift per day from the current level of 160 units per day.

TKAP is a global resource for the International Motor Vehicle project, making and supplying R type manual transmission to seven vehicle assembly plants of Toyota across the world.

It is also considered the first Indian auto transmission component maker who will be a global source for a tier 1 component. Toyota Motor Corporation officials had earlier said that India could turn out to be its lowest-cost manufacturing centre in the world because of its competitive cost of manufacture, abundant engineering talent and strong tooling industry.

The outlay for the auto parts venture is around Rs 250 crore. Apart from manufacturing manual transmission parts, TKAP also makes propeller shafts and front and rear axles.

The current capacity of the plant for propeller shafts is about 50,000 units a year and for front and rear axles it is about the same number. The plant employs about 550 people.

Toyota Motor Corporation has a 64 per cent stake in the joint venture while Toyota Industries Corporation has a 26 per cent stake while the rest is with Kirloskar Systems.

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