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Lucas and TVS plans units abroad

by satish
September 7th, 2007

Auto component manufacturer Lucas-TVS on Thursday said it will invest up to Rs. 400crore in the next two-three years to expand capacity and product development, while planning to set up new manufacturing units in Indonesia and Thailand. “We will invest 400crore over the next two-three years in R&D, manufacturing and capacity building,” Lucas-TVS Vice President(Business Planning ), Arvind Balaji, told reporter here. The company, which at present has seven operational plants, including one in Iran, is also mulling over setting up new plants in Indonesia and Thailand. Mr. Balaji said the company had started production in the Iran plant through a joint venture with an investment of Rs. 16crore in which it was the majority partner.

To expand its presence, the company would launch its products in Germany in the next two years, besides looking for inorganic growth opportunities. “Lucas-TVS is looking out for domestic and international acquisition,” company President (Operations), N. Ravichandran, said. He, however, declined to give details of the company’s of the future acquisition plans. On the domestic front, Lucas-TVS is about to set up a plant in Singur to supply parts to Tata Motors for its Rs. 1lakh car. “We have acquired land in Singur to supply starters and alternators to Tata Motors’ Rs. 1lakh small car,” Mr. Ravichandran said.

The company, which had a had a turnover of $250 million in the last fiscal, was expecting to double the last fiscal, was expecting to double the revenue in the next four years, Mr. Balaji added.

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