Business Daily from THE HINDU group of publications
Tuesday, Jul 08, 2008
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Business Daily from THE HINDU group of publications Tuesday, Jul 08, 2008 ePaper | Mobile/PDA Version | Audio |
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HCV/LCV/Tractors Corporate - New Projects States - Tamil Nadu Daimler-Hero venture to have high local content DHCVL decided on Chennai considering its proximity to vendor base, infrastructure, transportation connectivity and the large number of skilled workers. Our Bureau
Chennai, July 7 The joint venture of Daimler AG and Hero Group, which today formally signed a MoU with the Government of Tamil Nadu for setting up a Rs 4,746-crore greenfield commercial vehicles facility in the State, will start with a high level of localisation — 80 per cent. The plant of Daimler-Hero Motor Commercial Vehicles Ltd (DHCVL) is coming up on a 400-acre plot at Oragadam, near Chennai, a growing industrial suburb, sandwiched between the two automotive hubs of Maraimalainagar and Sriperumbudur. 70,000 vehiclesFrom 2010, the joint venture will produce about 70,000 light and medium duty commercial vehicles. The project will provide employment to 3,000 people and generate over 20,000 indirect jobs. The “80 per cent local content” aspect of the project has enthused the auto components manufacturers here, who believe that they may need to put in fresh investments to cater to DHCVL. A number of auto parts vendors told Business Line today that with the existing players also ramping up volumes, it would be difficult to supply to the new comer from their existing plants. €700-m investmentDHCVL will invest over €700 million (Rs 4,746 crore) over the next five years, of which €350 million will be the equity. Of this, Daimler will contribute €220 million as foreign direct investment. DHCVL decided on Chennai considering its proximity to vendor base, infrastructure, transportation connectivity and the large number of skilled workers. Daimler-Hero venture to invest Rs 4,400 cr More Stories on : HCV/LCV/Tractors | New Projects | Tamil Nadu
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