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BAJAJ AUTO TO ENHANCE CAPACITY FROM 3.5 MILLION TO 5.1 MILLION VEHICLES PER ANNUM BY 2009.
GREENFIELD PROJECT BEING SET UP AT PANTNAGAR IN UTTARANCHAL- CAPACITY 1 MILLION MOTORCYCLES.
GREENFIELD PROJECT TO BE SET UP AT CHAKAN TO MANUFACTURE THE NEW GENERATION OF 3-WHEELERS AND LIGHT CARGO 4- WHEELERS.


A meeting of the Board of Directors of Bajaj Auto Limited was held today to consider the sales, financial targets for 2006-07 and capital expenditure for the ensuing years.

Considering the robust domestic demand for Bajaj vehicles and plans for a major foray in markets outside India, the Board has approved plans to build capacity of 2 & 3/4-wheelers to 5.1 million vehicles per annum by 2009. [2-Wheelers - 4.6 million & 3 /4-Wheelers - 0.5 million].

In the first phase it is proposed to expand motorcycle capacity to 3.6 million per annum by 2007.

The total capacity expansion will be implemented in phases over the next 3 years through a combination of:

 

Expansion of capacities at its existing plants in Akurdi and Chakan.

 

Greenfield project at Pantnagar in Uttaranchal, which will commence operations in 2007.

 

Greenfield project at Chakan to manufacture the new range of 3 / 4-wheelers which is expected to commence operations in 2008.
   

 

The Board cleared projects towards capacity buildup, R&D, new model developments, pro-biking showrooms (Company's high-end retail initiative) across the country and an all new "learning center" at Akurdi, at an estimated outlay of Rs. 1500 Crores over the next 3 years. These requirements will be financed by Company's own funds.

   

For FY '07, the Company targets a volume of 2.85 million units (2,550,000 two wheelers and 300,000 three wheelers), including exports of about 365,000 units.

 

Sanjiv Bajaj
Executive Director
10th March 2006


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