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Ford India has expanded its diesel engine production capacity at the company's Maraimalainagar plant, near Chennai, said Mr Michael Boneham, Managing Director.
The company has invested $72 million to raise capacity to 340,000 units from 250,000 previously. This expansion has generated an additional 300 jobs.
The company faced production and supply constraints last year due to rising demand for diesel engines. The ramp-up is expected to help address such issues.
Ford expects 10 per cent rise in growth in the next few months, though market conditions are tough, Mr Boneham said. “We expect things to pick up around the festival season.”
Exports, he said, are growing well. The Chennai plant exports to over 30 markets. “That will be 50 by the end of the year.”
On the weakening rupee, Mr Boneham said he expects it to remain unstable for some more time. Rupee depreciation does have an impact, with input costs going up. But high degree of localisation has helped tide over the impact to an extent, he said.
CSR initiatives
The company expects to roll out the urban SUV Ecosport early next year. It had announced a $142-million investment on this. With Ecosport, the Chennai plant will ramp up to full capacity (200,000 units). Last year, production touched 127,000.
Mr Boneham said the company's upcoming plant in Sanand (Gujarat) is “on track”.
On power shortage in Tamil Nadu, Mr Boneham said it has challenged Ford's suppliers. “But, wind energy has cut in and created a better position than before,” said Mr Boneham, on the sidelines of a press conference to announce Ford's CSR initiatives.
Ford India has dipped into the global Ford Motor Company Fund to commit an investment of $250,000 in Chennai on developmental activities.
In the first phase, Ford has partnered with three non-governmental organisations (AID India, Tara and Society for Poor People Development) to invest $125,000. This will go towards improving education, access to safe drinking water, sanitation and vocational training for women in nearby villages.
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