The Hindu : Business : Bajaj Auto chalks out Rs. 1,500 cr. capex plan

Online edition of India's National Newspaper
Saturday, Mar 11, 2006

Business

Business

Bajaj Auto chalks out Rs. 1,500 cr. capex plan

Staff Correspondent

Two greenfield projects proposed

MUMBAI: Bajaj Auto Ltd. (BAL) has chalked out a Rs. 1,500 crore capital expenditure programme over the next three years. Following its board meeting, the company announced that it would be increasing the capacity of its two and three and four-wheelers to 5.1 million vehicles per annum by 2009 (two wheelers — 4.6 million units and three and four-wheelers — five lakh vehicles). In the first phase, the company proposes to expand motorcycle capacity to 3.6 million units per annum by 2007.

According to the company, the expansion programme will be implemented over the next three years through a combination of expansion of capacities at its existing plants at Akurdi and Chakan, a greenfield project at Pantnagar in Uttaranchal, which will commence operations in 2007, and another greenfield project at Chakan to make a the new range of three and four-wheelers, which is expected to commence operations in 2008.

The company's board has cleared the projects towards the capacity expansion, R&D, new model developments, probiking showrooms (company's high-end retail initiative) across the country and an all new `learning centre' at Akurdi at an outlay of Rs. 1,500 crore over the next three years.

The fund requirements will be met through the internal accruals. In 2006-07, the company has targeted a volume of 2.85 million units (2.55 million two wheelers and three lakh three wheelers), including exports of around 3.65 lakh units.

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