Lucas in 5-yr topline-doubling plan

The five-year plan would see company going for acquisitions

NEW DELHI: Lucas TVS, the joint venture between TVS and Lucas of the UK, plans to double turnover to $500 million in the next five years.

This requires the alternator/starter maker to seek acquisitions in the auto electricals space and invest substantial amount in research and development (R&D) as well as capacity expansion.

So, on the anvil are at least three new manufacturing facilities - Pondicherry, Iran and Singur (for Tatas’ Rs 1 lakh car) - and an investment of Rs 300-400 crore over the next four years on overall expansion.

The company already has plants at Chennai, Pondicherry, Rewari in Haryana, Chakan and Uttaranchal.

Says president (operations) N Ravichandran: “We are open to acquisitions in the auto electricals space. But, simultaneously, we are expanding our manufacturing capacity as well as R&D efforts”.

Lucas TVS recently acquired the auto electricals business of Sical Logistics (formerly called Indrad Auto) for over Rs 14.7 crore. Ravichandran says generating funds for another acquisition would not be difficult since internal accruals would come in handy.

Explaining the rationale for going to Iran, he said that the company has forged a joint venture with a local partner to service the 8-9 lakh unit car market in that country.

Lucas TVS supplies Korean company Kia Motors with 1 lakh starters/alternators for Iran, at present.

It plans to eventually set up shop in Indonesia as well since sister company TVS has already established a manufacturing presence there.