Lucas TVS on global and local expansion mode

Our Corporate Bureau
20 March 2006

Chennai: Chennai-based auto component manufacturer Lucas TVS Limited is on an expansion spree — locally as well as globally. In India the company is setting up production facilities in Pondicherry, Pune and Himachal Pradesh. Overseas, the company is setting up an assembly line in Iran in joint venture with Feiz Ghadir Industries to manufacture auto electricals.

Speaking about the Iranian project, T K Balaji, chief executive and managing director said, "We have shipped the assembly line to Iran. In one month the 1-lakh per annum units plant will be ready." The plant is located 150 kilometres from Tehran. (See: Lucas TVS plans to set up a plant in Iran)

Lucas TVS exports around 1-lakh units of starter motors to Iran. Recently a delegation from the Saipa Group, Iran has placed orders for the supply of starter motors to be fitted as original equipment in Pride cars.

Asked about the company''s China plans, Balaji said it was not on their radar now. "A Starter motor is not like any other auto component that could be supplied to auto makers. Lot of discussion goes with the vehicle manufacturer before the product is made for them." Meanwhile, a Chinese delegation from the Haiyan county of China had visited the company in Chennai. Haiyan county is part of Zhejiang Province where Sundram Fasteners Limited has set up its fasteners plant.

On the company''s expansion plans within India, Balaji said, a plant in Himachal Pradesh will be set up at an outlay of Rs10 crore. The plant will be ready by next March to avail the tax concessions declared by the state government.

Lucas TVS is also setting up a plant in Pune (outlay Rs15 crore) and in Pondicherry (Rs4 crore). The Pune plant is expected to be ready by this year-end and would cater to the needs of Tata Motors Limited. Presently the company has three plants in India - one each in Chennai, Pondicherry and Rewari in Haryana.