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Journalism of Courage
Three-wheeler maker Atul Auto plans to invest around Rs 200 crore on a foray into the light commercial vehicle (LCV) segment and the products are likely to hit the road by December next year.
The Rajkot-based auto major has already started scouting for land near Ahmedabad.
“We are looking for around 100 acres of land near Ahmedabad to set up a facility to manufacture LCVs. We plan to invest around Rs 200 crore in this facility,” Atul Auto
Director Vijay Kedia said.
“The investment will be generated through internal accruals and debt,” he added.
Initially,the company plans to manufacture around 24,000 units of 600-1,000 tonne light commercial vehicles annually.
“Our (four-wheeler) products will hit the road by December,2012,” he said.
The company is now scouting for technology.
“We are actively looking for a foreign partner for technology collaboration. We will finalise a suitable partner within two months,” he said.
Earlier,Atul Auto had said it was willing to acquire a 95.38 per cent stake in Scooters India Ltd following the decision to sell the government’s entire stake.
“We are keen to acquire Scooters India as both (Atul Auto and Scooters India) make similar products in terms of front-engine three-wheelers,” Kedia said.
The BSE-listed company plans to double its capacity in
the passenger as well as commercial vehicle segments from the current 24,000 units to 48,000 units by end-2011.
