| • | 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. |
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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: |
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• | Expansion of capacities at its existing plants in Akurdi and Chakan. |
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• | Greenfield project at Pantnagar in Uttaranchal, which will commence operations in 2007. | |
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• | Greenfield project at Chakan to manufacture the new range of 3 / 4-wheelers which is expected to commence operations in 2008. | |
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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. |
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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. |
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Sanjiv Bajaj
Executive Director
10th March 2006