TVS Motor Company to expand its operations in Eastern India
The Commerce and Industry Minister, Government of West Bengal, Mr.
Partha Chaterjee, today handed over to TVS Motor Company and Mahabharat
Motors Manufacturing Company, the in-principle permission granted by the
West Bengal Industrial Development Corporation Limited for the demerger
of the two wheeler business of Mahabharat Motors Manufacturing Company,
into a separate company through the court process of demerger. After the
demerger, TVS Motor Company will invest in this new venture subject to
approval that may be required by law and Government Regulations.
TVS Motor Company, which had entered into a Memorandum of Understanding
with Mahabharat Motors Manufacturing Company, West Bengal in 2008, will
thereby take a larger role in the demerged company and facilitate
stronger presence in the eastern region of the Indian market.
It may be recalled that as per the MOU, which was signed in 2008, TVS
Motor Company was to provide technical support for the manufacturing
facility. In addition, TVS Motor Company was to train personnel as per
the quality procedures and standards followed at its other assembly
plants. The manufacturing facility was created in accordance with the
MOU and commercial production commenced in September 2010.
TVS Motor Company will retain the existing staff and workers of
Mahabharat Motors Manufacturing Company and it expects to manufacture
initially around 1000 motorcycles per month. TVS Motor Company will also
use this facility as a hub to service West Bengal and North East
TVS Motor Company currently has three world class manufacturing
facilities within India in Tamilnadu, Karnataka and Himachal Pradesh to
manufacture two and three wheelers.