TVS to restart Bengal project

Hosur-based TVS Motor has picked up a 50 per cent equity stake in a joint venture project with Prasoon Mukherjee-promoted Universal Success in a bid to revive its plans to make two-wheelers in the state.

TVS Motor will make the two-wheelers from a 63-acre facility at Uluberia, around 30 km from Calcutta.

At present, Mahabharat Motors, promoted by Universal Success, produces 250 units monthly under contract manufacturing with TVS. With TVS’s entry as an investor, this can be scaled up to 400,000 units per year.

Of the 63 acres, 45 acres have been earmarked for the manufacturing facility, while ancillary units will come up on the remaining land.

In 2006, Universal Success had tied up with the Salim group from Indonesia to manufacture budget bikes. The project failed to materialise.

In 2008, TVS entered into a contract manufacturing agreement with Universal Success to produce bikes under the Mahabharat Motors brand.

But TVS had to temporarily shelve the project after recession hit sales.

The company today sent a letter to the state government, stating its intention to restart the project.

Once the facility goes onstream, TVS will be able to tap the markets in Bengal and the Northeast.

“The entry of TVS in Bengal is a revolution in the development of the automobile industry in the state. Earlier, TVS was supposed to sell two-wheelers under the Mahabharat brand. But, with the demerger of the two, TVS will start making two-wheelers on its own from the Uluberia facility. There is 63 acres there, of which TVS will operate on 45 acres (which will have the manufacturing facility),” said industry minister Partha Chatterjee today.

“A letter from TVS has reached the state government today, stating their intent to start operations in Bengal. H. Lakshmanan (director of TVS Motor) is expected to come to the city soon and we shall discuss in details the project,” added Chatterjee.