Daimler India Commercial Vehicles (DICV) has signed a Memorandum of Understanding with the Government of Tamil Nadu, to invest Rs 2,277 crore to expand production capacity a well as for new products.
The expansion will be done at the Oragadam plant which manufacturers trucks in the range 9 to 55 tonne. This investment will create approximate 400 jobs, DICV said in a statement.
This is part of the 17 MoUs signed by the state inviting proposed investments of Rs 15,100 crore which will create jobs for over 47,100 people.
"This is the second MoU that DICV has signed with the Government of Tamil Nadu. It demonstrates our confidence in the long-term potential of India as a market for commercial vehicles, and our ongoing commitment to the country as a whole," said Satyakam Arya, MD & CEO, Daimler India Commercial Vehicles.
DICV was established as a wholly-owned Daimler subsidiary in 2009 to address four strategic targets: serve the strategic Indian growth market for commercial vehicles, leverage its potential as an exports base, develop its sourcing potentials for Daimler globally, and leverage specific competencies to provide shared services to the Daimler Group.
Since launching its made-for-India CV brand BharatBenz in 2012, DICV has sold well over 100,000 trucks and buses both in India and abroad. The company also exports to around 50 countries. DICV has already exported more than 30,000 vehicles and 125 million parts.
DICV’s manufacturing plant at Oragadam near Chennai is spread over 400 acres including a test track and is home to the company’s headquarters, R&D and training operations.The plant also produces for Daimler Trucks’ brands of FUSO, Mercedes-Benz and Freightliner. Products and parts are exported to more than 50 markets in the Africa, Asia, Latin America and the Middle East.