Mumbai: Tata Chemicals Ltd, has lined up a $1 billion (Rs4,100 crore) investment over the next two-three years, and will likely foray into bio-diesel, fresh fruit and vegetable production and distribution as part of its expansion strategy.

Talking about its expansion plans, Tata Chemicals'' managing director Homi R Khusrokhan said the company has set up jatropha cultivation in five regions of the country for production of bio-diesel.

Besides, it also plans to cultivate sorghum for the production of ethanol, and it would set up a plant with an investment of Rs40-50 crore in eastern Maharashtra.

According to Khusrokahan, once the model is successful, it will be replicated elsewhere in the country for large-scale manufacture of ethanol for blending with petrol. He also said tahat each plant would take 15-18 months to set up.