The Hindu Business Line : MAN to turn venture with Force Motors into truck export hub

EUROPEAN commercial vehicles major MAN AG, which has struck a joint venture with Pune-based Force Motors, plans to utilise its Indian operations as an export hub for the surrounding region, including the rest of Asia and Africa.

According to Mr Abhay Firodia, Chairman and Managing Director, Force Motors, about half of the heavy commercial vehicle sales are expected from overseas markets.

In particular, exports are aimed at China, South East Asia, Asia Pacific, Africa and West Asia.

Exports are expected to touch over 10,000 trucks per year within a few years, with exports in the third year of operations expected to touch Rs 2,500 crore.

The joint venture company, MAN Force Trucks Pvt Ltd will come into existence in April 2006, with 70:30 participation from Force Motors and MAN respectively.

The trucks manufactured will range from 16 tonnes GVW to 49 tonnes GVWand include long haul trucks, tippers, tractor trailers, multi-axle vehicles and special purpose vehicles like concrete mixing platforms, petrol-cum-tankers, etc.

"The joint venture is expected to have a turnover of about Rs 5,000 crore in a few years' time," Mr Firodia said.

Force Motors is investing about Rs 700 crore at Pithampur to create a manufacturing facility with a capacity of 24,000 trucks per annum.

The new plant will have the full spectrum of manufacturing facilities such as production of engines, gearboxes, axles, cabs and facilities for assembly and testing of all aggregates and vehicles.

Mr Firodia pointed out that the project will also generate large export volumes of auto components, which will be arranged by Force Motors Ltd, to service the requirement of major MAN factories in Europe.

This will create potential for export business worth about Rs 1,000 crore for the country's auto components industry.

Force Motors, which will serve as sourcing agent for MAN in India, has put together an independent team to interact with local components manufacturers for exports to MAN.