Atul Auto eyes LCV foray, seeks foreign partner

Having cemented a strong position in the three-wheeler segment, the Rajkot-based Atul Auto is now looking to collaborate with a foreign entity to enter the four-wheeler market.

"We are keen to collaborate with a company whose technology will help us manufacture light commercial vehicles (LCVs)," Atul Auto's Director, Vijay Kedia, told PTI here.

Kedia has been touring abroad for the last one month scouting for a partner.

"We have not finalised anything yet, but we are keen to collaborate with a foreign company," he said, adding, "I will travel abroad again soon to visit more plants."

Earlier, Atul Auto was interested in acquiring a majority stake in Scooters India, an ailing public sector undertaking in which the Government was mulling a divestment.
    
"We are still keen to acquire Scooters India as both (Atul Auto and Scooters India) make similar products in terms of front-engine three-wheelers. Therefore, it will be a right combination for us. But no development is happening from the Government side," Kedia said.
    
The BSE-listed company plans to double its capacity in both the passenger as well as commercial vehicles segments from the current 24,000 units to 48,000 units by 2011.
"Demand for our three-wheelers is increasing in the
country. To cater to this demand, we plan to double our capacity to 48,000 units from the present 24,000 units by end-this year," Kedia said.
    
Earlier, the Rajkot-based company had decided to set up a new plant in south of India, but it has now revised its plan.
    
The firm now plans to expand capacity at its existing site in Gujarat and is investing Rs 30 crore to ramp up its capacity, he said.
    
The company also plans to boost its dealership network to 140 from the current 115 by end-this year. "We will increase our dealership network to 140 from the present 115 by December 2011," he said.