The Hindu Business Line : Pricol may begin production in Indonesia from December

Pricol's Indonesian plant is expected to begin production from December and the company's Uttaranchal plant would begin production from January 2007. Both these projects will be completed in two phases, according to Mr S. Udhay Kumar, Senior Vice- President, Product Development and Materials, Pricol Ltd.

The company will invest Rs 19.6 crore for the Uttaranchal unit of which Rs 15.6 crore will be used in the first stage. The Indonesian unit will see an investment of Rs 18 crore of which the first stage will cost Rs 16.3 crore.

Production

The Uttaranchal unit located at Panthnagar will produce 10 lakh sets of speedometers, oil pumps, fail sensors and gear systems for Bajaj Auto in the two-wheeler category. About one-lakh sets of instruments and field sensors will also be made for Tata Motors and Mahindra and Mahindra in the cars and multi-utility vehicle segment.

The Indonesian unit will come up at Karawang and will initially supply to the two-wheeler companies like TVS Motor's Indonesian unit, Bajaj Auto's Indonesian unit, Denso Corporation's the Philippines and Thailand units, which in turn exports to Suzuki's units in these countries. About 8,50,000 sets will be made at Karawang of which about 2,50,000 will be for TVS Motors and Bajaj Auto. These capacities are for the first year. Production can be increased at these units depending on demand, said Mr Udhay Kumar.

Pricol also plans to set up an unit in Iran to supply instrument clusters. It has an Iranian partner to sell its products.

Pricol produces 14 products catering to the two-wheeler segment, 16 products for the cars and MUVs segment, seven products for trucks segment and 16 products for the tractors and other vehicles segment. The two-wheeler segment contributes about 48 per cent of their revenues followed by cars and MUVs at 33.6 per cent.

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