TVS Motor All Set To Invest Rs 400 Cr On Capacity Expansion

TVS Motor All Set To Invest Rs 400 Cr On Capacity ExpansionIndia's leading two wheeler manufacturer TVS Motor Company is ready to make an investment of around Rs 400 crore by 2012 with the aim to increase its yearly production capacitance by two folds.

After expansion, the company will be able to produce four million units on a yearly basis.

On the sidelines of the company's AGM, Mr. Venu Srinivasan, company's chairman and managing director, stated, "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."

The said investment of Rs 400 crore will come from the company's debt plus internal accruals.

Mr. Srinivasan also said that TVS Motor is eyeing to hit a turnover of Rs 10,000 crore by the next two years.

He also told that the company hopes to increase its exports to 20% of the revenue by 2012 as against 7% currently.

During the last month (August 2010), the company registered its highest ever monthly sales increase of 33.52% at 1,70,735 units as against 1,27,875 units during the corresponding period of 2009.

The two-wheeler sales of the company in August 2010 grew by 31.75% at 1,67,109 units as against 1,26,842 units in August 2009.

The company's motorcycle sales in August increased 30.21% to 66,574 units from 51,127 units in the like period of last year.