Company eyeing small car segment, willbe setting up its biggest ever plant in Mundra
BAJAJ AUTO, WELL-KNOWN manufacturers of two- and three-wheelers, are looking at Gujarat for their next venture.
Bajaj plan to set up a manufacturing plant near the port town of Mundra in Gujarat where they will manufacture two- and three-wheelers along with a facility for their much awaited small car.
The new plant promises to be the company’s largest in India and will entail a capital outlay of Rs 1,000 crore. Bajaj plan to export 60 per cent of the fi ve million units that can be manufactured at the Mundra plant.
Incidentally, Bajaj Auto will be the third major automobile manufacturers to invest in Gujarat. The reason for them to move out of their home state of Maharashtra is the State government that has withheld a sales tax refund of Rs 1,100 crore from April 2010. Bajaj Auto have indicated this to the State government. However, instead of releasing the refund, the State government has slapped a Rs 600 crore notice for non-payment of sales tax for 2009-10. Bajaj Auto have challenged the notice in a court of law.
