TVS group in talks with Andhra Pradesh government to set up one of its largest forging units
The move comes close on the heels of the state government's efforts to make the southern Andhra region a hub of automobile manufacturing.
The move comes close on the heels of the state government's efforts to make the southern Andhra region a hub of automobile manufacturing and encourage an ecosystem of auto ancillaries by offering large-scale incentives.
In September, Hero Motocorp said it will set up its largest twowheeler and spare parts production facility near Sri City integrated business city in southern Andhra Pradesh at an investment of Rs 1,600 crore.
This followed an announcement by Isuzu Motors that it will set up a Rs 3,000-crore truck manufacturing facility in the same area. “The TVS group representatives have held parleys with us several times over the last few months, expressing their interest to set up one of their largest forging units,“ said P Krishnaiah, chairman, Andhra Pradesh Industrial Infrastructure Corporation (APIIC).
Venu Srinivasan-led TVS group manufactures dozens of auto components and spare parts, and exports them. Locating the proposed forging unit near Krishnapatnam port is expected to help the company in hassle-free exports to South Asian countries among others. “The TVS group delegations headed by their chairman had sought at least 60 acre of land at one of the industrial estates near Naidupet in Nellore district, which is closer to their headquarters, Chennai,“ Krishnaiah told ET.
The Chennai-based industrial conglomerate has proposed to invest at least Rs 250 crore in the first phase, providing employment to around 500 people. “They (TVS group) have also expressed interest to expand the capacities in phases by investing further. How ever, they are yet to submit a concrete proposal, seeking land and approvals, with details of investments and capacities,“ said Krishnaiah. He said officials of the state's industries ministry have explained the existing incentives being offered by the government and promised to pass on further incentives promised by the Centre under the Andhra Pradesh State Reorganisation Act 2014.
“We have assured them the required land, quicker approvals and uninterrupted power supply , apart from handholding till the unit takes off,“ he said.
ET's queries to TVS group seeking details on the proposed cumulative investments and capacities in phases, and anticipated advantages in locating the facility near Naidupet remained unanswered.