News: Daimler plans to expand India operations

(BL 14/09/2006) Pune - DaimlerChrysler is firming up plans to expand and consolidate its India operations and is in the process of setting up a new plant in the country.

The company has requested the State Government for a large plot of land to locate its new facility, top Government sources told Business Line.

"We have identified a 100-acre plot at Vadgaon on the Mumbai-Pune route," they said, adding that the Government would be ready to hand over the land to the company in a couple of months once it gets the company's go-ahead.

"We are in the process of evaluating our expansion and consolidation plans and are looking at various options in terms of availability of land," Dr Wilfried Aulbur, CEO and Managing Director, told Business Line, when contacted.

The sources also said that the company was initially given the option of locating its new facility at Ranjangaon, which is already home to Fiat, but DaimlerChrysler favoured a location closer to the Mumbai-Pune expressway since it imports completely built up units (CBUs) of M, S, CLS, SL and SLK class cars and soon, the Actros truck.

"We are focusing on the Pune region; once a plot is available we will shift the existing facility to the new location, though it is difficult to put a timeframe to the move at this point," Dr Aulbur said.

The company's current facilities are located on a 20-acre plot at Chikhali near Pune where it assembles the S, E and C class cars.

The company is looking for a new location so that it can integrate its various operations in the country.

The existing facility is dedicated exclusively to its passenger car business.

DaimlerChrysler recently entered the truck segment with its Actros range targeted at the mining sector initially.

The company expects to grow this business by entering other segments of the truck segment.

Industry sources said that the company will also enter the bus market with its range and the new facility will be required to integrate all the operations under one roof.

Asked if the company will also house its truck and the future bus business in the new facility, Dr Aulbur said: "We have not finalised those decisions but it is always better to consolidate operations and leverage synergies. We are evaluating various options and will be working out the relevant decisions about such issues as we move along."

DaimlerChrysler India has a research and technology centre in Bangalore which currently has 350 people.

The industry sources indicated that the company, which sees the centre playing a greater role in its global engineering design space, is in the mood to eventually shift it to Pune too.