TVS Motor signs agreement with the Tamil Nadu government to invest Rs 1,200 crore in Future Technologies and Electric Vehicles
The TVS Motor investment will primarily be used for the design, development, and manufacturing of new products, as well as capacity expansion in the EV area.
The Venu Srinivasan-led TVS Motor Co., one of the world’s top two- and three-wheeler manufacturers, has signed a memorandum of understanding (MoU) with the Tamil Nadu government for an investment of Rs 1,200 crore in future technologies and electric vehicles. On Tuesday, the MOU was inked in the presence of Tamil Nadu Chief Minister M.K. Stalin at the Tamil Nadu Investment Conclave 2021 in Coimbatore.
At the conclave, 59 Memorandums of Understanding (MoUs) were signed in total. They are planned to produce close to 75,000 jobs in the state and include an estimated investment of more than Rs 35,000 crore.
Boom Motors, a Coimbatore-based electric vehicle (EV) manufacturer, has also signed an MoU to expand its manufacturing base with a projected expenditure of Rs1,000 crore.
A couple of cement companies, Dalmia Bharat Green Vision and UltraTech Cement, also signed memorandums of understanding to establish grinding/manufacturing operations. UltraTech, an Aditya Birla Group subsidiary, has a strong presence in Tamil Nadu, where it expanded in 2013 with the acquisition of Dharani Cements.
Adani, Welspun, and Larsen & Toubro have all expressed an interest in establishing IT centers. While energy firm Shell announced plans to expand its retail presence in the state, Hindustan Unilever signed an agreement to invest in the food industry. A few component manufacturers also attended the MoU signing ceremony.
Two of the 59 MoUs fall under the SPA, or structured package of assistance, model, in which the state government provides certain incentives. One is with the Japanese company Daicel Corporation, which will invest 230 crores in Chengalpattu to manufacture auto components.
The other agreement is with PCBL (TN) Ltd, a subsidiary of Philips Carbon Black Ltd, which will invest 600 crores in Tiruvallur.
The TVS Motor investment will primarily be used for the design, development, and manufacturing of new products, as well as capacity expansion in the EV area. “As a responsible corporate citizen, this investment underscores TVS Motor Business’s continuous commitment to the state’s overall economic prosperity,” the company said in a statement.
Boom Motors, an electric vehicle manufacturer, stated that its Memorandum of Understanding with the state would assist the development of 5,000 jobs in Tamil Nadu.
“With the sanctioned sum of Rs 1,000 crore from the program, we are looking at expanding the production site in Coimbatore,” a company official said.
The business just released its Boom Corbett e-bike, which features swappable batteries and a portable charger that can plug into any household socket, eliminating the need for charging infrastructure. “So far, we have signed on 60 dealerships across 17 states in India with our partner (bike rental platform) eBikeGo.” “By the end of 2022, we expect to have nationwide coverage with 300 or more dealerships,” said Anirudh Ravi Narayanan, Boom Motors’ CEO, and co-founder.
