Scomi’s India plant delayed by a year

Malaysia-based Scomi Group’s proposed $12-15 million plant to assemble and manufacture buses in India will be delayed by a year. According to Kanesan Velupillai, president, Scomi International, the plant was to be set up this year, but was delayed because the company wanted to concentrate on the Mumbai monorail project first. “Also, in the first half of the year, the market was severely hit by the downturn,” he said, adding, “The plant will now come up within the next 12 months.” The Scomi-Larsen & Toubro (L&T) joint venture was awarded the Rs 2,460 crore project last November.

The company has almost zeroed in on Maharashtra for the location of the plant. “But we are also talking to Delhi and some southern states,” Velupillai said. Scomi aims to make low-floor city buses at the plant initially, and then components for its monorail coaches. “We have also signed agreements with a couple of Indian companies to distribute their monorail-based products in the 33 countries we are present in,” he said. 

Scomi is also looking to tap the Indian market for its marine service business. The company owns 134 ships that are used to ship coal. “We have a complete suite of marine products and there are huge opportunities in the Indian market,” Velupillai added.

About its monorail business in India, Velupillai said Delhi has already identified three lines and other cities like Bangalore and Pune also have plans to start a monorail service. The $1-billion Scomi Group’s monorail division, Scomi Rail, is one of three big monorail companies in the world along with Bombardier and Hitachi.