| Close on the heels of Tata Motors, Bajaj Auto and TVS Motors announcing their plans to set up manufacturing bases in Uttranchal, Pricol Ltd, a maker of automobile dash boards, has also announced that it would set up a plant at Pantnagar, Uttranchal, to cater to its clients.
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| Pricol (Premier Instruments & Controls) Ltd has said that the company has acquired land at Pantnagar, Uttaranchal, for setting up of a new plant to manufacture dash board instruments and other components and accessories for automobiles.
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| Vijay Mohan, managing director, Pricol Ltd told Business Standard that the new plant would involve an investment of Rs 19 crore and was expected to begin operations by February 2007. However, he said it was too premature to comment on the production capacity of the plant.
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| He pointed out that it would make sense to set up a plant closer to wherever larger clients start their manufacturing base, for supplying the inputs. This proves to be cost efficient for both automobile manufacturers as well as their component suppliers.
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| The company is currently focusing on Indonesia also. It expects its new plant in the country to start operations by November 2006.
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| This plant will cater to Suzuki Motorcycles, as well as TVS and Bajaj Auto. The investment in its overseas venture is about Rs 22 crore. The Indonesian plant will also cater to the supply to Yamaha and Kawasaki.
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| These two projects are expected to be funded by internal accurals and bank loans, he added. Pricol is a major original equipments in the domestic market.
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| The spurt in the automobile sector has postively influenced the company in expanding its manufacturing capacities by setting up new plants. |
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