Kolkata-based Vibgyor Allied Industries Ltd has decided to invest Rs 660 crore over next two years to set up a two-wheeler manufacturing facility at Dhulagori in Howrah. The 7-year old company is also looking to set up another manufacturing base in the southern part of the country in next two years.
The Rs 120-crore company would start its commercial production from the next month and roll out its 100cc-flagship bike, Gallop. "We have the capacity of producing 300-400 motorcycles per shift per day," said Mrigen Bannerjee, head of operations of the company. Vibgyor already has presence in sectors like retail, manufacturing of PVC pipes, educational institutions and real estate.
Vibgyor has already invested more than Rs 120 crore for the project."While our own funding would be almost 35% of the project cost, rest would be debt component. We have already tied up with three bankers," Bannerjee said.
"Our target is to sell 1.5 lakh units in 2009, 2.4 lakh in 2010 and 3.5 lakh units in 2011," said Raja Bhadra, chairman & managing director of the company. Vibgyor is targeting the youth above 18 years in the tier II and tier III towns in West Bengal. "As we expand our market, we will set up manufacturing base in the northern, southern and western parts of the country," he said.
Vibgyor is looking at creating a network of 520 dealers by 2009-10, apart from a chain of 1200 sub-dealers. "The dealers will be responsible for providing after-sales services and spare parts for the motorcycle," Bhadra said.
The company is also looking to launch a 125 cc motorcycle by June and a utility vehicle in the scooter segment by October this year. "We also have plans to come out with four wheelers in future," Bhadra said.