Piaggio to invest Euro € 65 Millions in Indian Business
Piaggio, is going to set up a diesel engine manufacturing plant near Pune. With an investment of € 65 million in a backward integration project, over the next two to three years, which includes establishing the plant.
According to Piaggio CMD, Mr Ravi Chopra. The Pune facility, with a capacity to produce 2 lakh engines annually, would serve as an international hub to service the requirements of the company, both in the three-wheeler and four wheeler segments.
"We are in the process of a acquiring the requisite land. The plant would also meet the requirements of Europe", he said, adding that, the production at the facility, will come up over 60 acres & is expected to commence by end 2009.
Mr. Chopra said the three-wheelers market is growing at 10% to 15% per annum, and the manufacture of commercial vehicles is the key driver that made Piaggio look at the own facility.
Announcing the launch of Ape Truck, Piaggio’s first international four wheelers, he said the company had been growing annually at 40%. The sales of three wheelers by the company rose from 60,000 in 2003 to 1,40,000 last year.
The company with a gross turnover of Rs. 1,500 crore, would focus on the southern market, as demand for light weight trucks is heavy, particularly in Tamil Nadu and Kerala.
« Back
|