Daimler to invest Rs 44b in India, looks for partners
Friday, 19 March 2010
CHENNAI, Mar 18 (PTI): The world's largest truck maker Daimler today said it will invest Rs 44 billion over the next five years to set up a manufacturing plant here.
Following its aborted joint venture with the Hero Group, the company is also looking for partners for its Indian venture. The German auto major's Indian subsidiary Daimler Commercial Vehicles India (DCVI) today inaugurated a truck testing facility at Oragadam, near the city.
"The company has planned a total investment of Rs 44 billion over the next five years. This is the company's first important step towards its strategy to develop, manufacture and launch trucks for the Indian volume market, beginning mid- 2012," DCVI Managing Director and CEO Marc Llistosella told reporters.
The 400-acre plant, which will manufacture light, medium and heavy commercial vehicles, will have an initial capacity of 36,000 units in the first phase and will be scaled up to 72,000 units finally, he added.
When asked if the company would again look for partners, Llistosella said: "We are open for shareholding partners, but it should add value for business sense. We will never jump from partner to partner... We will compete on the combination of our USP and we are open for multiple partnerships."
The company is holding negotiations in different areas, including logistics, IT, supply, dealers and financial services as "we need partners", he added.
In 2008, Daimler had planned to set up the plant with the Hero Group through a JV, but it did not materialise as the Indian partner pulled out of the venture last year.
"Partnership with Hero Group was with full consciousness and willingness, (but) then we were impacted by the financial crisis. This environment is really the best for Hero Group to invest on their own," Llistosella said.
Following its aborted joint venture with the Hero Group, the company is also looking for partners for its Indian venture. The German auto major's Indian subsidiary Daimler Commercial Vehicles India (DCVI) today inaugurated a truck testing facility at Oragadam, near the city.
"The company has planned a total investment of Rs 44 billion over the next five years. This is the company's first important step towards its strategy to develop, manufacture and launch trucks for the Indian volume market, beginning mid- 2012," DCVI Managing Director and CEO Marc Llistosella told reporters.
The 400-acre plant, which will manufacture light, medium and heavy commercial vehicles, will have an initial capacity of 36,000 units in the first phase and will be scaled up to 72,000 units finally, he added.
When asked if the company would again look for partners, Llistosella said: "We are open for shareholding partners, but it should add value for business sense. We will never jump from partner to partner... We will compete on the combination of our USP and we are open for multiple partnerships."
The company is holding negotiations in different areas, including logistics, IT, supply, dealers and financial services as "we need partners", he added.
In 2008, Daimler had planned to set up the plant with the Hero Group through a JV, but it did not materialise as the Indian partner pulled out of the venture last year.
"Partnership with Hero Group was with full consciousness and willingness, (but) then we were impacted by the financial crisis. This environment is really the best for Hero Group to invest on their own," Llistosella said.