Saturday, September 25, 2010

Bajaj Auto Expanding Its Capacity at Pantnagar Plant

After deciding discover to make 2 million a year brand and as the festival season is starting from the month of October Bajaj auto is expanding its capacity at its Pantnagar plant.
The company officials said that they are expanding the capacity to 1.8 million units a year from current 1.2 million units a year. The capacity expansion will cost Rs. 750 million to Bajaj Auto. The company expects to complete the capacity expansion work by October end.

Bajaj Auto’s Pantnagar Plant is spread across 66 acres. Bajaj auto had initially invested Rs 2.30 billion at the Pantnagar unit where the production began in 2007. Last year Bajaj auto expanded the capacity to 1.2 million units from 6,00,000 units a year. Currently Bajaj auto is producing its Platina, Discover and pulsar 135LS from this facility. When asked for a new model launch the company officials remain tight lipped and said “Such possibility always remains.”
The major reason to expand the capacity at Pantnagar plant is the tax benefits given in this industrial region. There are so many tax benefits among which a 100% excise rebate for 10 years is major one.

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