Toyota seeks land for expansion


Even as the second phase of investment for setting up its second car manufacturing plant to produce a small car in India is yet to be completed, the Toyota Kirloskar Motor Private Limited (TKML) is readying plans to expand its operations.

TKML, which is likely to complete the Rs 3,200 crore expansion by 2010-end at Bidadi, about 40 kms from here, is preparing the ground for future expansions. The company has sought an additional 20 acres from the Karnataka government for the purpose.


Vikram Kirloskar, vice chairman, TKML and Hiroshi Nakagawa, managing director, TKML confirmed the possibility of further expansion in Bangalore. Without giving the exact investment in their third phase of expansion, they said TKML was looking for additional land adjacent to their plant in Bidadi.

“We want to first complete the second phase of expansion, which will be completed by end of this year. Secondly, we want to launch Etios, the new hatchback and sedan version in India and stabilise its sales. However, we are looking at further expansion here because for any car maker to sustain and make profits a larger scale is required,” Kirloskar told Business Standard, here on Tuesday.

V P Baligar, principal secretary, department of industries and commerce, government of Karnataka said, “A high-level delegation led by Hiroshi Nakagawa, managing director of TKML, met chief minister B S Yeddyurappa today and asked for 20 acres of additional land adjacent to their existing plants. We are ready to give them as much land they require because Toyota has been a successful investor in Karnataka. Their proposal will come up for clearance during the next high level clearance committee and the chief minister has agreed to allot this land.”

The state government will acquire some more land from private landholders and allot to the company, he said.

Presently, TKML has 432 acres in its possession which is sufficient for its two plants. The company has so far invested Rs 1,700 crore on the first plant which has a capacity to produce 80,000 units per annum. The second plant, with an initial capacity of 70,000 units per annum and scalable up to 100,000 units per annum, is under construction. This will see an investment of Rs 3,200 crore.

The Toyota Kirloskar Auto Parts Pvt Ltd (TKAP) has about 50 acres of land in its possession adjacent to the TKML plant. It presently operates two plants for manufacturing R type transmissions, front and rear axles, and propeller shafts.

It is in the process of setting up its third plant for producing engines for Etios. Its combined investment in the three plants will touch Rs 1,000 crore by 2012.