Force Motors, German co ink JV
Force Motors Ltd of India and German auto major MAN Nutzfarzeuge AG have joined hands to manufacture heavy trucks.india Updated: May 01, 2006 02:09 IST
Force Motors Ltd of India and German auto major MAN Nutzfarzeuge AG have joined hands to manufacture heavy trucks with an initial investment of about Rs 700 crore and plan to launch a high-end bus by the year end.
The 70:30 joint venture aims to capture the huge potential in infrastructure, particularly in construction and hydro power projects that would require heavy trucks to carry power equipment and heavy materials on road. The manufacturing unit at Pithampur in Madhya Pradesh will roll out trucks with 100 per cent local content by December. The JV company named as MAN Force Trucks Pvt Ltd will start export of the trucks in mid-2007.
Speaking at the launch, Abhay Firodia, Chairman and Managing Director, Force Motors Ltd, said, “The demand for heavy trucks is all set to grow as the infrastructure grows in India. With good roads, in the long term too the region will achieve very high rates of growth, and investment will increase in transport infrastructure.”
The company has set a target to manufacture about 24,000 trucks annually and 50 per cent of them would be exported to countries including Turkey, Russia and those in Africa and the Middle East. The plant in India will also be a base for outsourcing of components for MAN’s manufacturing facilities in other parts of the world.
Anton Weinmann, Chairman of the Executive Board of MAN Nutzfarzeuge AG said, “Our strategy was to set up a low-cost high-quality production base in Asia, and India was a natural choice. We will also firm up our plans to start manufacturing of buses within the next six months from India and it would also be a 70:30 joint venture with Force Motors for which we have signed an MoU.”
MAN Nutzfarzeuge will have a Chief Technical Officer (CTO) and three of the total nine members in the board of MAN FORCE TRUCKS Pvt Ltd. The two companies signed the JV agreement in presence of Union Minister for Agriculture Sharad Pawar, and three former chief ministers of Madhya Pradesh.
Speaking on the occasion, Pawar said, “Slowly but steadily, India is being recognised as country with good manufacturing base. The government will encourage this as it will help India to make a mark in the world market after its stamp as an IT super power.”
First Published: May 01, 2006 02:09 IST