Uluberia (Howrah): The Salim group of Indonesia plans to set up a five-lakh per annum capacity two-wheeler unit here with a significant indigenous component, for which talks have already been held with auto component manufacturers across the country. Talking to The Hindu before the foundation laying ceremony of the plant, a Salim group official, who is also the project-in-charge, said the first motorcycle from the eastern region's first such plant would roll out by 2007.

The total cost of the project is $250 million, which would be implemented in phases, he said. Mahabharat Motors Manufacturing Pvt. Ltd, which will implement the project, is a joint venture between the Salim group of Indonesia and Universal Success, promoted by an NRI. The present product range is bikes with an engine capacity of 100cc and 125cc which are proposed to be priced in the $900 range and named Arjun. For the Salim group, which already has a two-wheeler plant near Jakarta, this is the first such overseas investment. The same two companies along with a third Indonesian company will invest Rs. 2,540 crore in a 390-acre township in Howrah.

The West Bengal Chief Minister, Buddhadeb Bhattacharjee, who laid Mahabharat Motor's foundation, disclosed that he had made a few unsuccessful attempts with Indian companies for a two-wheeler project in the state and was glad that the Salim group had stepped forward.

Beni Santoso, Chairman, Salim group, said the initial plant capacity would be 60,000 units which would be progressively stepped up. Starting with 500 people the project would employ 6,000 persons.

Printer friendly page  
Send this article to Friends by E-Mail