Eastman Group to set up motorcycle plant in China

Eastman Group, a Gurgaon-based manufacturer of hand tools, power tools, automotive parts and accessories is planning to set up a plant to manufacture two-wheelers in China.

It is also constructing a plant for tools and automotive parts, and accessories at Baddi in Himachal Pradesh which would begin operations by March 2008.

For the plant in China, the company has identified land to install its assembly lines and is expected to begin operations from April 2008. The plant would manufacture 100cc and 150cc motorcycles and export them to Argentina, Peru, Ghana, Cambodia and Chile and other countries in Latin America and Europe.

The company has been exporting motorcycles to these markets for the last five years and is looking to extend its presence in the coming years.

Company officials say financials for the project are yet to be worked out and that it has no plans to sell motorcycles in the competitive market of India.

The company has its manufacturing plant in Ludhiana. Through its new facility, the company will begin to look at newer locations like US, Canada and select European nations. Presently it exports its products to around 70 countries.

The Himachal facility will see an initial investment of around Rs 15 crore which and the total investment would be Rs 50 crore in a year's time, said Sanjeev Datta, head-auto parts and accessories for the Eastman Group.

The facility would have a manufacturing capacity of 10 lakh units per annum initially and would produce batteries for two-wheelers. Car and truck batteries would be manufactured after six months.

The company has roped in Kapil Dev, former captain of the Indian cricket team as the brand ambassador for its 'Addo' range of batteries.

The company claims this to be first time in the country where a manufacturer is offering two-wheeler batteries with a warranty period of 18 months. For Addo, 12 distributors have been identified with a retailer network of 550 outlets in Gujarat.