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Automotive Axles Ltd, a joint venture company of auto components maker Bharat Forge Ltd (BFL) and Meritor Inc USA, plans to set up a greenfield plant in Madhya Pradesh, and is currently in the process of finalising the location.
According to a person familiar with the development, the company will invest about Rs 75 crore in the first phase of the new project. It expects to build the plant near Indore in order to service auto OEMs in Pithampur area and the northern region of the country. The company declined from commenting on the subject.
AAL, a listed company in which both promoters hold 37 per cent each, already has two manufacturing facilities near Mysore where it makes axles and braking systems. It also has units in Pantnagar and Noida where assembly is undertaken, as well as an after-market distribution centre at Pune. The total installed capacity is around 150,000 units annually.
At the new facility, it's sixth in India, AAL plans to add capacity by another 60,000 axles, the person said. It is expected to go on stream by 2014.
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