Bajaj Auto to close Akurdi plant; shift base to Waluj

Our Corporate Bureau
24 August 2007

Mumbai: Bajaj Auto will shut down its plant at Akurdi on the outskirts of Pune and shift its production to Waluj near Aurangabad from September.

Bajaj Auto, India's second largest two-wheeler maker, also announced a four-day week at its Akurdi plant effective 1 September. The decision is expected to cut down losses due to a steep fall in the demand for two-wheelers. Sources say it will gain Rs 1,000 per vehicle from the shift.

Bajaj's corporate office will continue to remain at Akurdi. The 200 acre premises will also house an R&D centre and an export, purchase and financing office. An R&D and engineering centre will come up on 100 acres.

Bajaj Auto has invested about Rs 200 crore on R&D in the past two years and proposes to invest another Rs 100 crore on a learning centre on a 21 acre plot.

While Bajaj Auto gets no incentives in Akurdi, it gets reasonable benefits in other locations such as Chakan in Pune, Waluj in Aurangabad and Pantnagar in Uttrakhand.