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Old 20th June 2016, 10:10   #1
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Default Triumph India cancels plans for Karnataka factory

Triumph Motorcycles India have officially announced their plans to pull back an investment worth Rs. 850 crores for their manufacturing plant, which was to be set up in Narasapura, Karnataka. The reason behind this step is being cited as the state government's 'uncooperative approach'.

Under the aforementioned plans for Karnataka, Triumph had proposed a motorcycle manufacturing facility spread over an area of 30-acre, in Narasapura, which is located in the Kolar district of Karnataka. This plant would have brought in an investment of Rs. 850 crores in the state, while also creating thousands of job opportunities for the locals. Triumph had earlier said that it expects the Narasapura plant to produce 2.5 lakh bikes every year.

But what came in as a deal sourer was the fact that despite paying an (undisclosed) advance amount for land acquisition and even getting a project clearance in 2012, the state government could not provide undisputed and clear land to the British automaker. Irked by this approach, Triumph India have now decided to pull back all investments from the state, and have even demanded a refund of the investments made till date.

The Iconic British motorcycle brand is now eyeing its plant in Manesar, Haryana as its manufacturing hub. The company will be consolidating and strengthening the production processes of its manufacturing plant here, and will even plan to enhance production by introduction of new assembly lines, if the market demands it.

Source: ET Auto

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Last edited by dZired : 20th June 2016 at 10:17.
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Old 20th June 2016, 13:12   #2
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Default Re: Triumph India cancels plans for Karnataka factory

Not been hearing good things about Karnataka in the automotive circles, with many manufacturers viewing it as 'unfriendly'. The state only has a handful of manufacturers, with the most prominent being Toyota & Volvo.

They had better pull their socks up to attract future investments.
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Old 20th June 2016, 19:25   #3
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Default Re: Triumph India cancels plans for Karnataka factory

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Not been hearing good things about Karnataka in the automotive circles, with many manufacturers viewing it as 'unfriendly'. The state only has a handful of manufacturers, with the most prominent being Toyota & Volvo.

They had better pull their socks up to attract future investments.
The current Govt is not business friendly. First it was the Hero Motors, Now we are hearing about this.

Previous Govt was much better. It had cleared Scania and Honda (two wheelers) investments much quickly.
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Old 20th June 2016, 20:33   #4
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Default Re: Triumph India cancels plans for Karnataka factory

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Originally Posted by GTO View Post
Not been hearing good things about Karnataka in the automotive circles, with many manufacturers viewing it as 'unfriendly'. The state only has a handful of manufacturers, with the most prominent being Toyota & Volvo.

They had better pull their socks up to attract future investments.
Add TVS (Mysore Plant) to the list apart from Toyota and Volvo.

For the next 2 years until the government term ends, I cannot see any change with respect to the "Unfriendly" environment becoming "Friendly". With the cabinet change, it is all going to be chaos until the term ends.

PS: Kindly excuse for ranting about the state government. Reality is that, the small/medium scale industries are suffering too (tonnes of red tapes).
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Old 20th June 2016, 20:47   #5
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Default Re: Triumph India cancels plans for Karnataka factory

Such a loss for Karnataka, 1st was the Nano and then came the Hero Factory both at Dharwad and now Triumph, next 2 years with the same Govt Karnataka will be losing a lot more.
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Old 21st June 2016, 14:51   #6
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Default Re: Triumph India cancels plans for Karnataka factory

This is a big fumble by the administration. If the factory had been set up, it would have been a game changer for the region and the state would have gained immensely. It would have attracted other premium brands to setup shop as well.

Karnataka's loss is Haryana's gain.

We will continue to be happy with out software industry.
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Old 21st June 2016, 15:56   #7
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Default Re: Triumph India cancels plans for Karnataka factory

This is not just the case with KA alone. Even Tamilnadu has been facing similar issues for quite sometime now. All the companies which are currently manufacturing in TN have been established some 5 years back and there hasn't been any big names since then except for Yamaha and expansion of existing companies. I don't understand why state goverments are not proactive to get the companies in their states because doing so will bring in huge investments and most importantly will create thousands of jobs. Its sad that there are lakhs and lakhs of jobless engineers from various fields like automobile, electronics etc who all could have atleast tried applying somewhere when new companies setup shop and the deserving 10000 or 15000 of them would have a break in their lives. And all this goes into the bin due to poor politics of certain people in the government. To make things worse, these days the companies which have setup their facilities in various parts of India also consider moving out or abandoning their facility completely owing to either unfriendly nature of the government or lack of demand for their products (The hurtful pictures of abandoned Nano factory in Gujarat comes in my mind). Even Renault-Nissan in Chennai was facing so many issues due to losses but all they needed was one winner and thankfully they have one. Now the employees have an hike of about 18,000 per month for the next 3 years.
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Old 22nd June 2016, 12:29   #8
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Default Re: Triumph India cancels plans for Karnataka factory

Karnataka has been sounding very hostile new businesses, not just in the manufacturing sector but also in the technology space as well. Take for example the case of Ola and Uber. Another pressing issue in Bangalore as far as the common man is concerned is the super expensive public transport system. It is easier to drive or take a cab to office than take the BMTC Volvos!
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Old 22nd June 2016, 13:07   #9
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Default Re: Triumph India cancels plans for Karnataka factory

IT investment currently probably gives them plenty in white and black money for them to worry about negotiating with development in mindset.

It will be interesting to see say Hyderabad/Telengana taking over some projects soon.

Tamilnadu - The state is almost the same. Corrupt politicians and land mafia that rule the roost. We continue to cry custom duties to several products simply because no one is ready to invest with our political system. I am pretty sure we can build cars at rates comparable or cheaper to say Thailand.

It wont be surprising if Ford quits Tamilnadu for various reasons.
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Old 22nd June 2016, 14:25   #10
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Default Re: Triumph India cancels plans for Karnataka factory

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(The hurtful pictures of abandoned Nano factory in Gujarat comes in my mind).
Did you mean the abandoned plant in Singur, West Bengal?
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Old 22nd June 2016, 16:30   #11
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Default Re: Triumph India cancels plans for Karnataka factory

I guess the reason could be that after some time sops doled out to companies might be more and some states might not be interested.
Remember the amazon warehouse issue, the state didnt budge on the sales tax and didnt care.
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Old 22nd June 2016, 16:30   #12
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Did you mean the abandoned plant in Singur, West Bengal?

Yes! I stand corrected. I was talking about the plant in WB.
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Old 22nd June 2016, 16:35   #13
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Default Re: Triumph India cancels plans for Karnataka factory

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Originally Posted by nkrishnap View Post
Add TVS (Mysore Plant) to the list apart from Toyota and Volvo.

For the next 2 years until the government term ends, I cannot see any change with respect to the "Unfriendly" environment becoming "Friendly". With the cabinet change, it is all going to be chaos until the term ends.

PS: Kindly excuse for ranting about the state government. Reality is that, the small/medium scale industries are suffering too (tonnes of red tapes).
I second this. I am skeptical if things will improve once the current terms gets over as well.

It is sad to note how almost all our neighboring states are soaring in the development front. Things seem standstill in this state with pretty much anything and everything.
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Old 22nd June 2016, 16:35   #14
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Default Re: Triumph India cancels plans for Karnataka factory

Acquiring land in 2012 would have been easy, getting the same when we are so close to elections would raise unnecessary controversies. KA govt. is earning well through IT so not much of a loss. I am not saying current administration is investor friendly in fact seeing deteriorating infra of Bangalore suggests it's quiet opposite.
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Old 22nd June 2016, 20:06   #15
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Default Re: Triumph India cancels plans for Karnataka factory

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Originally Posted by GTO View Post
Not been hearing good things about Karnataka in the automotive circles, with many manufacturers viewing it as 'unfriendly'. The state only has a handful of manufacturers, with the most prominent being Toyota & Volvo.

They had better pull their socks up to attract future investments.
In addition to Volvo & Toyota, Karnataka has Tata Motors, Honda Motorcycles, TVS Motors, TAFE & Scania. But this is in no way an indicator of Industry friendly government. In the last 2 decades, Karnataka has had some of the most corrupt politicians ruling the state. They are not isolated to one political party. Every party competes in pitching the worst scum of a soul they could find on this land. A state that was "relatively" one of the best governed state has turned into one of the worst governed.
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