The Hindu Business Line : Lucas TVS mulls plant in S-E Asia

“We will be supplying to the Tata Motors plant in Thailand. So, to take advantage of the local duty structure, it would help if we set up a unit there,” said Mr A.G. Satvinder Singh, Executive Vice-President, Business Development and Marketing.

“Besides, with a dominant presence of some of the best global players in the Thai market, it is of strategic significance,” he added.

TVS Motors has already set up a manufacturing facility in Indonesia.

On Thursday, the company announced Rs 300-crore investment plans over the next 2-3 years.

This would be mainly in R&D, capacity expansion at existing plants and fresh overseas investments.

“About four per cent would be allotted for R&D,” said Mr T.K. Balaji, CEO and Managing Director.

The rest would be utilised for capacity expansion at Chakhan, Puducherry, Chennai, Bhiwadi and Pune, he added.

“Besides, we are also setting up a plant in Singur to cater to Tata Motors’s Rs 1 lakh car project and are looking at overseas investments,” Mr Balaji said. On the company’s growth trajectory in the near future, he said: “In 2007-08, our turnover will be Rs 1,000 crore and by 2010-11, we expect it to double.”

He added that the company was also looking to increase its exports to 30 per cent of its production, from the current 10 per cent.

Exports currently amount to Rs 100 crore.

Lucas TVS is engaged mainly in the manufacturing of starter motors, alternators and wiping systems.

It supplies to original equipment manufacturers such as Maruti, Tata Motors, Mahindra, TVS Motor and Bajaj Auto.

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