Jakarta , 16 Jul 2007

President SBY inaugurates TVS Motor Company factory in Karawang

President Susilo Bambang Yudhoyono inaugurates the factory of PT TVS Motor Company Indonesia in the Surya Cipta Estate in Karawang this afternoon.

The president was accompanied by Mrs. Ani Bambang Yudhoyono and Minister of Industry Fahmi Idris and West Java Governor Danny Setiawan.

Chairman of TVS Motor Company India, Mr.Venu Srinivasan accompanied by Mrs. Mallika Srinivasan, and the President Commissioner of PT TVS Motor Company Indonesia, Mr.Nihal Kaviratne, were also on hand to greet the dignitaries.The factory, located in 20 hectares of land with complete manufacturing facilities, is producing the TVS Neo, the new generation of bebeks for the Indonesian market. With a capacity of 300 thousand units per year, the company will be producing other variants and models.

The factory has a track for testing motorcycles, a training center, quality laboratorium, offices and other support facilities.

President Susilo Bambang Yudhoyono congratulates TVS Motor Company India and TVS Motor Company Indonesia for its success in building the motorcyle factory in Karawang, West Java. The President hopes that the company will continue to grow and contribute to Indonesia?s economy as well as the people?s efforts to improve their welfare. The President also wishes to see the cooperation between Indonesia and India growing in future.

Our initial investment is about 50 million US Dollars, with local value addition of 40% at start up. This investment will be scaled up to 100 million US Dollars over the next 3 years, in order to achieve local value addition of 80%? said Mr. Venu Srinivasan, Chairman of PT TVS Motor Company Indonesia. We are long distance runners. Our interests in Indonesia are long term, and a two-half years and a great deal of effort to understand the needs of the Indonesian consumer before we put our first product on the market?.

The first product from the factory introduced to the Indonesian market, the TVS Neo, is a new generation of bebek motorcycles, called the Gen-i, Intelligent Generation Bike, a combination of engine performance and durability, with the latest technology and elegant, sporty design. (please refer to fact sheet for more information).

The TVS Neo is a bebek motorcycle with many unique and sophisticated features. ?We have spent more than three years researching and developing the revolutionary motorcycle aimed at Indonesian families, men and women. This is the first product from TVS and in future, there will be more models produced for our Indonesian consumers, said Nihal Kaviratne CBE, President Commissioner of PT TVS Motor Company Indonesia.

A group of school children performed and sang in front of the President and guests. They are students from the Kutanegara elementary school located near the factory site. This school was in need of renovation, which PT TVS Motor Company Indonesia immediately look up and added two new classrooms built by TVS Motor Company Indonesia before the company began production.

Similar to the TVS Motor Company?s three factories in India, in the cities of Bangalore, Mysore and Himacal Pradesh, the green plant concept is used in the construction of the factory in Karawang, paying due observance to the surrounding environment. The waste processing system will minimize environmental pollution as it is using the latest waste processing technology.

Not only that, the selection of building materials and construction also pays due observance to the environment and to provide a place of work enjoyable to the employees.

For example, the use of the flip lock roofing system, lets light into the factory area but prevents the sun's rays during the afternoon from directly entering the factory.

About the TVS Group
  • Â The TVS Group, a large industrial group established in 1911, consists of more than 30 companies with a revenue in excess of USD 2.7 billion and more than 30,000 employees throughout the world.
  • The company has three world class factories with modern facilities in India, respectively in :
    Hosur of 70 ha
    Mysore of 110 ha
    Himachal Pradesh of 20 ha (the newest) and 2,500 customer service posts throughout India. The company sold about more than 1,5 million motorcycles last year.
  • The company has received the Deming Prize for Total Quality Management from the Union of Japanese Scientists & Engineers. The company has also received TPM Excellence Award from the Japan Institute of Plant Maintenance.
  • The company?s R&D division consisting of over 400 technology experts creating revolutionary innovations, including the VT-i (Variable Timing Intelligent) and Economy-power mode, and has more than 80 patents.
  • TVS Motor Company produces a range of motorcycles and scooters and exports to 40 countries, including the award winning TVS Apache and Scooty Pep+.

About PT TVS Motor Company Indonesia
  • PT TVS Motor Company Indonesia is the designated hub in Southeast Asia for TVS Motor Company India.
  • TVS has set up an integrated manufacturing facility that includes engine assembly, vehicle assembly, testing and painting facility on a 20Ha land in Surya Cipta Industrial estate in Karawang West Java, with an installed capacity of 300,000 motorcycles.
  • TVS plans a full manufacturing operation, complete with local research and development capabilities.
  • TVS is committed to world class quality manufacturing and production from its Indonesian facility.
  • The first phase of investment is USD 50 million and TVS plans to increase this amount to USD 100 million over the next three years.