TVS Motor to invest Rs.400 crore to double capacity

September 8th, 2010 - 8:02 pm ICT by IANS  

Chennai, Sep 8 (IANS) Two wheeler maker TVS Motor Company is mulling to invest around Rs.400 crore over the next two years to double its annual production capacity to four million units, a top company official said Wednesday.
“Consolidation and capacity expansion are the two priorities for the company next fiscal. Over the next two years the company will invest Rs.400 crore on capacity expansion from two million units per annum to four million units,” Chairman and Managing Director Venu Srinivasan told reporters on the sidelines of the company’s annual general meeting.

The investment will be funded through a mix of debt and internal accruals, he said.

Srinivasan said the company is also targeting a turnover of Rs.10,000 crore by 2012 from last year’s total income of around Rs.4,484 crore.

He said TVS Motor will close this fiscal with a turnover of around Rs.6,000 crore hoping to gain a market share of 17 percent.

On the exports front, Srinivasan said the company hopes to increase it to 20 percent of the revenue by 2012 from the current share of around seven percent.

About group company TVS Energy, he said the company’s windmills will start generating soon and plans are there to have a generation capacity of 200 MW in next couple of years.

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