MUMBAI (Thomson Financial) - Fiat India Automobiles Private Ltd, the joint
venture between Fiat SpA and Tata Motors Ltd, said it will invest an additional
23.41 bln rupees to increase capacity at its Ranjangaon plant in the western
Indian state of Maharashtra.
Fiat India said it signed a memorandum of understanding with the state
government of Maharashtra to enhance production capacity and for backward
integration at its Ranjangaon plant.
Fiat India chief executive Rajeev Kapoor said the agreement will help it
meet increased customer demands and simultaneously facilitate backward
integration.
Fiat India will enhance the capacity of its Ranjangaon facility to
manufacture 200,000 cars, 300,000 engines and 300,000 parts and accessories.
At present the facility at Ranjangaon, near the western Indian city of Pune,
has a capacity to manufacturer 100,000 cars and 200,000 engines and transmission
parts.
The MoU will also aid in the production of the 1.3 multi-jet engine which
was recently launched by the company in its product offering the Palio Stile,
Fiat India added.
By Yogesh Sapkale; TFN.newsdesk@thomson.com
yos/ssa/vs
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