Atul Auto Limited, the three wheeler auto rickshaw major from Rajkot, is now considering changing its plan of setting up the production unit of its four wheeler light commercial vehicle (LCV) project from Ahmedabad to another place as the company is facing problems in acquiring land near Ahmedabad.
“Our four wheeler LCV project might be delayed by at least three to four months as we are facing problems in acquiring land near Ahmedabad area. We are also considering shifting this project from Ahmedabad to Rajkot or any other place. However the place has not yet been finalised,” said Vijay Kedia, director, Atul Auto.
“Till now, we have tried almost thrice to close the deal for land but due to price rise in Ahmedabad area, the deal has been cancelled. Now we are thinking of acquiring land at Rajkot near our three wheeler plant,” he said.
Atul auto had aims to start LCV production by the end of December 2012 but according to Kedia the project will delayed by at least three to four months. The company is also looking for a partner whose technology will help it to enter this segment. "It will take about 16-18 months to set up the plant. We are moving slowly on this project. We are keen to collaborate with a company whose technology will help us manufacture LCVs," he said," Kedia said.
The three-wheeler major is also contemplating the establishment of a four-wheeler facility in Gujarat, with an investment of around Rs 200 crore. Initially, the company plans to manufacture 10000 LCVs and later has plans to double the capacity. The process of expanding production from 24000 units to 48000 units is going on and it will be completed by March 2012, Kedia informed.
On acquiring a majority stake in Scooters India, Kedia said, “No development is happening from the government’s side. From next month onward, I have to look for other options, including entering the four-wheeler space.” The shares of Atul Auto on Thursday closed at 1.45 percent up to Rs 108.50 apiece on the BSE.
