Force Motors to invest Rs 500 cr in Pithampur

Madhya Pradesh chief minister Babulal Gaur's recent trip to Pune to woo investors to the state seems to be bearing fruit. Force Motors has finalised its decision to pump Rs 500 crore into its new project at the Pithampur (SEZ) plant in a phased manner.

The investment is to set up a completely new facility. Force Motors will set up the unit in collaboration with MAN, Germany. The plant will have a new infrastructure that would manufacture heavy-duty trucks from 16 tonne GVW to 50 tonne GCW.

The Madhya Pradesh government has accorded mega project status to the Force Motors project under its new industrial promotion policy.

"We will offer most advantageous and profitable solutions and set new benchmarks in engine, truck and transmission technology," said chairman and managing director, Force Motors, Abhay Firodia.

A large proportion of the components required would be sourced from vendors and suppliers from Pithampur, Indore, Gwalior, Dewas, Jabalpur and neighbouring ancillary units in the state.

"This will generate revenue for the state and provide nearly a thousand direct and indirect jobs. By manufacturing the new fleet of trucks, the company will compete with other majors such as Volvo, Tata and Eicher," said Sudhir Mehta, director, Pithampur plant.

He said under the first phase of expansion the investment is envisaged at Rs 350 crore. The production would start from April 2006. The installed capacity of the plant is 12,000 vehicles. "It would be enhanced to 24,000 later," said Mehta.