By Nehal Chaliawala Ketan Thakkar
MUMBAI: VE Commercial Vehicles, India’s fourth-largest blurb car maker, skeleton to deposit some-more than Rs 2,000 crore in a successive 3 years to raise ability and enhance a product portfolio. VECV is a corner try between a Volvo Group and Eicher Motors.
The supports will be utilized in expanding engine creation ability as good as car outlay by 50%. Plans embody an investment into a new plant, a preference on that is going to come adult for house capitulation successive month.
Besides annual collateral outlay of Rs 500 crore for a successive 3 years, VECV will be investing an additional Rs 600 crore in a new plant. The company, however, was neutral on a accumulative investment.Engine outlay is being stretched from 50,000 to 75,000 units to accommodate Volvo’s tellurian needs. And once a new plant is commissioned, VECV’s ability will be increasing from 90,000 units to 140,000 units. Speaking on a side-lines of a launch of a new 41-tonne complicated avocation lorry in Mumbai on Wednesday Vinod Aggarwal, MD of VECV told ET that a
direct sourroundings is really strong and that a association is handling during best ability from a existent plant.
“We are perplexing to furnish some-more from a existent set-up. We have constructed 8,000 units a month, so we can widen a existent facility. However, we would need a new plant. The preference is expected to be done successive month. Once a preference is taken, it will take another 15 months to hurl out a initial product from a new plant,” Aggarwal said.
Growing consumption, postulated infrastructure and construction activity, anathema on overloading and GST advantages are pushing direct for blurb vehicles in a country. Aggarwal expects a attention to means a double-digit expansion movement for a successive dual years during slightest before a BS VI norms flog in, that might lead to cost boost of about 10% and successive impact on demand.
“We have only crossed a rise of FY12 in a final financial year. For 5 years, a attention was in hibernation, so clearly there is most some-more room for expansion in a entrance dual years and we are scheming to attend in this growth,” he said.
Astrong challenger in a light and middle avocation lorry shred with 33% marketplace share, VECV has remained a extrinsic actor in a complicated avocation lorry shred with a tiny 5% marketplace share. The association is banking on a dual new launches to assistance boost volumes. Aggarwal says he expects a complicated avocation lorry volumes to grow 50% to 1,500 units a month this financial year. After posting 12% expansion in FY18, VECV has postulated double number movement in a dual months of FY19 during 33% on comment of alow bottom of final year.