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Pune , Oct. 9

THE Rs 850-crore Bajaj Tempo Ltd on Thursday announced its entry into the heavy and medium commercial vehicle segment in technical collaboration with German truck and diesel engine technology major MAN.

Announcing the collaboration and charting out its vision for 2010, the Chairman and Managing Director, Mr Abhay Firodia, said the company will invest between Rs 250-350 crore into the project over the next 2-3 years in setting up manufacturing facilities at greenfield sites and lines at existing locations where it has operations.

"With the truck market evolving in India, we plan to enter the market with a range of vehicles in the 16-50 tonnes category including multi-axles and tractor trailers for specific effective market applications."

The company will set up a new truck production line for which it is considering a separate factory at its existing Pithampur manufacturing facility where it plans to establish an initial capacity of 6,000 units annually.

Also on the anvil is a new plant at Chakan near Pune, where it plans to set up a facility to manufacture new technology engine at a Greenfield site. Mr Firodia, however, said the company is also considering other options for locating its new venture in terms of States that would offer maximum benefits in terms of taxation and logistics.

Mr Firodia said the German collaborator, MAN, would provide the input for the development of the modern vehicle cabs and engines for the new venture while Bajaj Tempo will provide the local production and the strength of its organised sales network. The project will emphasise value addition in India with major components for engines, gear boxes, vehicle cab and chassis parts produced in-house at new facilities established by the company.

"Proprietary/ancillary products will be sourced from Indian component manufacturer. The first of the trucks will roll out of the new facilities in 2005, he said adding that the new business would be operated as separate division of the company with its own sales and service support network in key locations and important markets.

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