TVS-E plans to set up unit in Himachal

The board of directors of TVS Electronics have approved in principle to examine a proposal to establish a manufacturing unit in Himachal Pradesh

The initiative has been undertaken "to take advantage of the state's excise duty and other tax concessions," according to information available in a company release. They have also authorised the officials to contact the Government of Himachal Pradesh and others in this regard.

"The Himachal initiative represents the continuation of our efforts to drive costs down and to sustain its competitiveness, however we'll closely evaluate the varied options soon. We expect to start setting up the new facility during this fiscal year," said Gopal Srinivasan, director, TVSE-E in a statement from a company release. .

A senior company official said, "There is nothing clear as yet, they have given a go ahead. An internal team will evaluate and come back in 90 to 120 days come back with a clear proposal."

He further added it was too early to comment on investments, capacity or the products to be manufactured.

TVSE's board also approved the change of the accounting year from January to December to April to March to align with its parent, Sundaram Clayton. The company's previous fiscal would be for a period of 15 months ending March 31, 2005.