Tata Motors, the leading name in commercial vehicles production is looking forward to make a huge investment of Rs. 600 crore in a move to develop and manufacture Futuristic Infantry Combat Vehicles (FICV) for which the company had placed its bid around two years back.
The company is amongst the four companies that have been shortlisted by the state for further negotiations on the production of vehicles for defense purposes.
The automaker is also intuiting to set up a separate manufacturing facility for these armored vehicles production as per the orders placed by the government.
Mr. Ravi Pisharody, the President (Commercial Vehicles Business Unit), Tata Motors was quoted as saying, "The development cost of FICV could be around Rs 300 crore and a manufacturing plant for the same could be around Rs 250 crore or above." He further said, "The plant may be set up in Dharwad (Karnataka) if we get the order."
The company has already formulated the strategies for the development of the infantry combat vehicles but has revealed that the plans for establishment of a production plant will be actualized only after the tender is granted.
The financial analysis statements of the firm shows that the revenues earned from the defense business stood around Rs. 1000 crore in this fiscal year marking a steep growth of 50 percent as compared to the last fiscal year and is expecting further growth of 25 to 30 percent in the next fiscal year.
At present, the armored vehicles produced by Tata Motors is sourced to the African countries, Nepal, US troops in Afghanistan and Sri Lanka.
