Korean auto major Hyundai Motor is all set up to sign a memorandum of understanding (MoU) with the Tamil Nadu government to invest Rs 7,000 crore to increase its production at Sriperumbudur facility.
Managing Director and CEO, Y K Koo, vice-president (corporate affairs), B C Datta and assistant vice president (Finance) N Ramesh of Hyundai Motor India Limited (HMIL) met Tamil Nadu Chief Minister Edapaddi K Palaniswamy at the Secretariat on Monday.
Datta said, "This Rs 70 billion project means increased production capacity, new model launch and powertrain, altogether. We have the MoU signing in January with Tamil Nadu Government," reported Business Standard. He added that the additional investment would create 700 new jobs.
Datta told that the objective of the meeting was to explain the new investment plans to the chief minister and request government's support through tax incentive, water and power for the expansion work. He added HMIL would sign MOU with the state government at the Global Investors Meet scheduled in January 2019.
With the new investments, the company's production capacity in the Sriperumbudur facility would increase from 700,000 units per year to 800,000 units, including 50,000 completely built-up units and another 50,000 completely knocked down (CKD) units. The investment also proposed to start manufacturing electric vehicles within the next three years.
The company also exports its products to around 87 countries, including the Asia Pacific, Africa, Latin America, and Australia.
(Edited by Vivek Dubey)
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