Lucas-TVS, a maker of electrical parts for automobiles such as starter motors, said on Thursday that it will spend up to Rs400 crore in the next three years for expanding capacity as it seeks to double its turnover. The company is building two factories in Singur, West Bengal, and Indonesia to supply to Tata Motors Ltd, India’s largest truck maker, and TVS Motor Co. Ltd.
“We are looking to double our turnover to Rs2,000 crore by 2010,” said N. Ravichandran, president, operations, of the Chennai-based company, part-owned by the TVS Group, which makes auto parts and two-wheelers.
He didn’t say how exactly the company was going to raise the money to finance this expansion.
The company is also planning to expand capacity at its existing units in Puducherry, Singur and Iran as it seeks to expand production by 15% every year till 2010.
Ravichandran also said the company was targeting a seven-fold increase in exports to Rs700 crore by 2010 as it seeks to reduce its dependence on the Indian market.
“The competition is global,” he said. “We are working with some big people in Germany and other countries,” he added.
Overseas sales of Indian parts makers have grown at double-digit rates in the past five years to $2.8 billion (Rs11,480 crore) in 2006-07, according to the Automotive Component Manufacturers Association (ACMA).