The Hindu Business Line : MLR Motors plans rollout of micro commercial vehicle in Jan

Hyderabad May 1 The first micro commercial vehicle and a passenger variant will be rolled out of the MLR Motors `Greenfield' plant near here by Sankranti (January) 2008.

And by January 2009, the company expects to roll out its first set of passenger cars from its plant to come up in the Medak district of the State.

The Chairman of MLR Motors, Mr B.V.R. Subbu, said they plan to create a facility for 1,20,000 cars a year and later scale it up. These cars would have all the trappings of Italian design, the perfection of German engineering and the advantages of Indian production capability.

Phase-I

The first phase will see investment of Rs 1,250 crore over three years and followed by second phase spread over five years wherein the investment will go up to Rs 5,000 crore. Speaking to newspersons, Mr Subbu said that the company was in negotiations with three UK-based firms for power trains and the company is working on both petrol and diesel variants.

Earlier, the foundation stone for the car plant was laid in the presence of the Chief Minister, Dr Y.S. Rajasekhara Reddy, and the Major Industries Minister, Dr J. Geeta Reddy. The Chief Minister assured all support for the car project.

The Government has allotted a 225-acre site for the car plant and another 50 acres for the ancillary units. The car plant would enjoy VAT and State tax benefits for a period of 10 years, Ms Reddy said.

New car plant

Thus far the company has invested about Rs 100 crore all through equity and plans to commence work on the new car plant by July this year and the first car would be rolled out 15 months, thereafter, according to Mr Lokeswara Rao, Managing Director of MLR Motors.

The car plant has the potential to employ about 6,000 people both directly and indirectly through other ancillary units.

Mr Subbu said they have acquired intellectual property rights for a B segment car and the new cars planned would be designed to current day specifications. These cars would be truly world class and affordable and priced competitively.

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