Force Motors will invest about Rs 100 crore to set up an engine assembling and testing plant in Tamil Nadu to be operational by January next year.
The company's board today approved plans to establish a facility at Anjur village in Tamil Nadu's Kancheepuram district. The plant will also produce gearbox and other aggregates.
"The plant will be a dedicated facility to assemble and test passenger car engines, and other aggregates for an international original equipment manufacturer, which has a manufacturing base in the state," Force Motors Managing Director Prasan Firodia told PTI. Citing confidentiality clause, he declined to identify the OEM and also the total engines that would be supplied annually.
"This is a long term contract and we will invest about Rs 100 crore to set up the plant. It will be funded through internal accruals," Firodia added.
On the expected timeline for operationalisation of the plant, he said the company was looking at January next year, subject to obtaining all the regulatory clearances.
Force Motors sells a range of vehicles, including small commercial vehicles, multi-utility vehicles (MUVs), light commercial vehicles, sports utility vehicles (SUVs) and agricultural tractors.
The company has two plants in India at the moment. Its small commercial vehicles and tractors are rolled out from the facility at Pune, while others such as SUVs, MUVs and other commercial vehicles are produced from Pithampur in Madhya Pradesh.