The Hindu Business Line : Vibgyor Group to invest Rs 800 cr in new ventures

Ahmedabad, July 9 The Kolkata-based Vibgyor Group, which recently launched the 100-cc indigenously-made motorcycles with plans to invest Rs 660 crore in automobile business, is now diversifying with investments of Rs 800 crore more in the next two to three years, a company official has said here. “We are now planning to set up a cement plant at Badjora in West Bengal and also have plans to diversify into information technology, film-making, real estate, and having our own news channel Key-TV. Together, we would be investing around Rs 800 crore in these initiatives,” Mr Mrigen Banerjee, Vice-President, Vibgyor Vehicles, told Business Line after launching the 100-cc motorcycle ‘Gallop’ in the Gujarat market.

The vehicle, endorsed by cricketer Saurav Ganguly, was launched in Kolkata in April and in Lucknow a few days ago. The group would finance its projects through 20 per cent internal accruals and 80 per cent borrowings.

Automobile business

For film and TV projects, the company has acquired 400 bighas in North Bengal. Mr Banerjee said the Rs 660-crore investment earmarked for automobile business included expenditure at the existing plant at Dhulagori (Howrah),West Bengal, for manufacturing two-wheelers and projects for other motorcycle assembly plants in Lucknow, Hyderabad and Gujarat.

The Gujarat plant will have an investment of around Rs 50 crore and provide employment to 1,000 people. The company also plans to set up a PVC pipe plant in Gujarat and enter the real estate business as well here.

Gallop, which is priced at Rs 29,990 and has a mileage of 75-80-km a litre is being targeted at the youth and those earning a minimum of Rs 8,000 a month, who constitute nearly a fourth of the 100-cc bike-owners.

Of the 100 lakh motorcycles sold annually, the company expects to capture 5 per cent of the market with sales of five lakh bikes by 2011. Its current manufacturing capacity is 300 vehicles a day. It started exporting Gallop to Bangladesh in June. In October, Vibgyor will launch its 150-cc bike ‘Shark’ and 125-cc bike ‘Hunter’. By the end of the current fiscal, Vibgyor will have a 521-strong dealer network and another 1,200 sub-dealers across the country.

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