Business Daily from THE HINDU group of publications Tuesday, May 27, 2008 ePaper | Mobile/PDA Version | Audio |
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Automobiles Corporate - Restructuring
Mr P.M. Telang, Executive Director (Commercial Vehicles), Tata Motors (file photo). Alka Kshirsagar
Pune, May 26 The country’s leading vehicle manufacturer Tata Motors is in the process of re-organising its manufacturing facilities for commercial vehicles, and over time, intends to create hubs for a particular category of vehicle at each of its various production units. Towards this goal it is expected to move out manufacture of nearly 10,000 heavy commercial vehicles from Pune to Jamshedpur during the current fiscal. InvestmentTo implement the strategy, the company is investing Rs 12,000 crore over the next few years to expand and modernise its existing plants, develop new products and set up vehicle testing facilities. This includes Rs 6,000 crore at its Pune factory. As per the plan, mother plant Jamshedpur supported by Lucknow will be the hub for heavy commercial vehicles, Lucknow the hub for MCVs and buses and Pune the centre for light commercial vehicles and pick-ups. Its newest plant in Uttarakhand has already been identified as the hub for the mini-truck Ace. Mr P.M. Telang, Executive Director (commercial vehicles), Tata Motors, confirmed that the company is in the process of re-structuring its production plants to create vehicle-specific hubs. “The broad strategy is to make Lucknow the hub for buses, and Jamshedpur the hub for HCVs,” he said. Asked whether production of HCVs would stop altogether at Pune, he said, “We have not decided that yet.” Mr Telang also refused to put a figure to the exact investment at its Jamshedpur plant, but said that it the total amount would be around Rs 6,000 crore in addition to a similar amount at Pune. Earlier, responding to a query, a Tata Motors spokesperson said, ‘Over time, Jamshedpur supported by Lucknow will be the hub for heavy commercial vehicles, while Pune will be the hub for light commercial vehicles and pick-ups. At Jamshedpur, we are undertaking expansion and modernisation activities.” Since 2006, the company has already begun expanding capacity at its Lucknow plant from the existing 100 vehicles to 300 a day. The unit was set up 1992 and currently manufactures heavy, medium and light commercial vehicles, buses and utility vehicles. The Pune plant manufactures around 85,000 HCVs a year in addition to MCVs, LCVs, UVs, bus chassis and a range of passenger cars. The Ace, which is also produced here in small numbers, will in time, be moved out entirely to its Pantnagar facility. More Stories on : Automobiles | Restructuring | Tata Motors Ltd
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