Chennai: Belgium-based WABCO Holdings has embarked upon a Rs 60 crore investment plan for its Indian operations during this financial year, a top company official said on Wednesday.
Indian subsidiary WABCO-TVS has been renamed WABCO India in line with an agreement with TVS Group’s Sundaram Clayton Ltd.
“We have taken control of this joint venture (JV) and now we hold 75%. The remaining 25% is publicly traded”, WABCO chairman and chief executive officer (CEO) Jacques Esculier told reporters.
About their proposed plans in India, WABCO India whole-time director P. Kaniappan said “Rs 60 crore has been announced for this year’s capital expenditure plans. We will invest around Rs 40 crore for expanding our facility at Mahindra World City special economic zone (SEZ) in Chennai and another Rs 10 crore for setting up a facility at Lucknow. The remaining would be utilized for other purposes.”
Currently WABCO India has two facilities in the South and one at Jamshedpur. The Lucknow facility would be its fourth in India.
“We will invest Rs 10 crore in this facility (Lucknow). Right now, the land has been acquired. Mostly it will be an assembly plant for us. It will be catering to (vehicle manufacturers) like Tata Motors and Ashok Leyland,” he said.
On expanding of Chennai facility, he said they were ramping it under phase two operations during which compressors for overseas markets will be manufactured, he said.
In 2010-11, revenue from exports contributed Rs 117 crore to the total revenues of Rs 899 crore.
The company has 7,000 outlets in India and can use TVS brand name till June 2012. “It will be (a) smooth transition for us (from WABCO TVS to WABCO India). Even now we have their support,” he said.