BMW, soon from Chenglepet, TN

sandeepmdas · 21st July 2005, 13:43

http://in.rediff.com/money/2005/jul/21bmw.htm

BMW, the German luxury car maker, has decided to set up a plant in Chenglepet, Tamil Nadu, through a wholly-owned subsidiary at an investment of Rs 100 crore (Rs 1 billion).

The Chenglepet plant will assemble automobiles using completely knocked down car parts kits imported as well as sourced in India, sources close to the development said.

It will also import completely-built units from the German parent and its group companies. The Indian subsidiary will also market and distribute the automobiles in India and overseas, in addition to providing after-sales service.

Many deem India as the final frontier in the automobile battle, given that the market, which recorded a million in car sales last year, has the largest growth potential after China but remains relatively untapped, especially at the premium end.

In recent times, BMW has made a number of visits to the sub-continent to examine the feasibility of setting up operations. In one, a four-member team led by senior manager Wolfram Rehm was here to assess the possibility of setting up shop in Kerala. Other locations considered included Andhra Pradesh, Tamil Nadu and Karnataka.

Former Haryana Chief Minister Om Prakash Chautala, too,had claimed some months back that BMW would set up a manufacturing facility in the state.

BMW, the sources said, had told the government that it wanted to convert BMW India, incorporated in 1997 with a paid-up capital of Rs 100,000, into a wholly-owned subsidiary by acquiring all its 10,000 shares from the company's existing shareholders, Ravinder Nath and Satish Kumar Narula, at a face value of Rs 10 a share.

Besides, BMW will infuse fresh capital into the company at a face value amounting to Rs 73 crore (Rs 730 million).

ALSO READ: Lessons that Mercedes learnt in India
http://in.rediff.com/money/2005/jul/21spec.htm

Surprise · 21st July 2005, 14:12

That's a very good news for us. Chengulpatu has already started to attract investors and organizations & the prices will be skyrocketing in the coming years.

v_s_natarajan · 21st July 2005, 18:02

so Chennai is going the detroit way.
Hyndai, Ford, HM, TVS host of ancillary units
cool
God Bless BMW

rohithdr · 21st July 2005, 18:32

Hope this deal is genuine and not like VW

Maverick5490 · 21st July 2005, 18:34

Wow.. thats great news man.. The BEE M will be more accessible now!!

sridhar24 · 21st July 2005, 19:24

Thats great news, thats really goood news for all the car lovers.

Mpower · 21st July 2005, 20:15

Finally, Mercedes has some local competetion. Wonder what models will come in first. A 3 series for 20 lakh would rock the house.
100 cr suggests that the plant will be a modest affair with mostly assembly from kits.

Insane Devil · 21st July 2005, 22:30

so finally they decided on Chennai! hmm... well, chennai sure is becoming a Automobile hub!

EVO6 · 22nd July 2005, 01:46

Man... Amma has something going in the rite direction that every large auto giant is planning to set up plants in Chennai ....
Even Nokia choose TN over MH ...
Wake up Mr. Patil or u r gonna be awaken to a rude shock ...

nitrous · 13th January 2006, 22:43

So, who wants to be my neighbour??

Sid Schumacher · 14th January 2006, 17:12

Looks like the Jayalalitha's doing a good job. She has been attracting a lot of Big Companies to TN...first Nokia and then comes BMW.

21st July 2005, 13:43	#1
sandeepmdas Senior - BHPian Join Date: Feb 2005 Location: Varkala Posts: 1,539 Thanked: 2,492 Times	BMW, soon from Chenglepet, TN http://in.rediff.com/money/2005/jul/21bmw.htm BMW, the German luxury car maker, has decided to set up a plant in Chenglepet, Tamil Nadu, through a wholly-owned subsidiary at an investment of Rs 100 crore (Rs 1 billion). The Chenglepet plant will assemble automobiles using completely knocked down car parts kits imported as well as sourced in India, sources close to the development said. It will also import completely-built units from the German parent and its group companies. The Indian subsidiary will also market and distribute the automobiles in India and overseas, in addition to providing after-sales service. Many deem India as the final frontier in the automobile battle, given that the market, which recorded a million in car sales last year, has the largest growth potential after China but remains relatively untapped, especially at the premium end. In recent times, BMW has made a number of visits to the sub-continent to examine the feasibility of setting up operations. In one, a four-member team led by senior manager Wolfram Rehm was here to assess the possibility of setting up shop in Kerala. Other locations considered included Andhra Pradesh, Tamil Nadu and Karnataka. Former Haryana Chief Minister Om Prakash Chautala, too,had claimed some months back that BMW would set up a manufacturing facility in the state. BMW, the sources said, had told the government that it wanted to convert BMW India, incorporated in 1997 with a paid-up capital of Rs 100,000, into a wholly-owned subsidiary by acquiring all its 10,000 shares from the company's existing shareholders, Ravinder Nath and Satish Kumar Narula, at a face value of Rs 10 a share. Besides, BMW will infuse fresh capital into the company at a face value amounting to Rs 73 crore (Rs 730 million). ALSO READ: Lessons that Mercedes learnt in India http://in.rediff.com/money/2005/jul/21spec.htm Last edited by sandeepmdas : 21st July 2005 at 13:45.
	() Thanks

21st July 2005, 14:12	#2
Surprise Senior - BHPian Join Date: Feb 2005 Location: Chennai Posts: 2,523 Thanked: 454 Times	That's a very good news for us. Chengulpatu has already started to attract investors and organizations & the prices will be skyrocketing in the coming years.
	() Thanks

21st July 2005, 18:02	#3
v_s_natarajan BHPian Join Date: Feb 2005 Location: chennai Posts: 261 Thanked: 3 Times	so Chennai is going the detroit way. Hyndai, Ford, HM, TVS host of ancillary units cool God Bless BMW
	() Thanks

21st July 2005, 18:32	#4
rohithdr BHPian Join Date: Sep 2004 Location: Bangalore Posts: 104 Thanked: 0 Times	Hope this deal is genuine and not like VW
	() Thanks

21st July 2005, 18:34	#5
Maverick5490 Senior - BHPian Join Date: Feb 2005 Location: Thane Posts: 1,464 Thanked: 1,818 Times View My Garage	Wow.. thats great news man.. The BEE M will be more accessible now!!
	() Thanks

21st July 2005, 19:24	#6
sridhar24 Senior - BHPian Join Date: Apr 2004 Location: Bengaluru Posts: 1,046 Thanked: 88 Times	Thats great news, thats really goood news for all the car lovers.
	() Thanks

21st July 2005, 20:15	#7
Mpower Senior - BHPian Join Date: Mar 2005 Location: Bangalore Posts: 10,409 Thanked: 1,730 Times View My Garage	Finally, Mercedes has some local competetion. Wonder what models will come in first. A 3 series for 20 lakh would rock the house. 100 cr suggests that the plant will be a modest affair with mostly assembly from kits.
	() Thanks

21st July 2005, 22:30	#8
Insane Devil BHPian Join Date: Mar 2005 Location: Hyderabad Posts: 987 Thanked: 173 Times View My Garage	so finally they decided on Chennai! hmm... well, chennai sure is becoming a Automobile hub!
	() Thanks

22nd July 2005, 01:46	#9
EVO6 BHPian Join Date: Apr 2005 Location: Pune Posts: 488 Thanked: 11 Times	Man... Amma has something going in the rite direction that every large auto giant is planning to set up plants in Chennai .... Even Nokia choose TN over MH ... Wake up Mr. Patil or u r gonna be awaken to a rude shock ...
	() Thanks

13th January 2006, 22:43	#10
nitrous Senior - BHPian Join Date: May 2004 Location: UAE/Lon/Madras Posts: 6,965 Thanked: 325 Times View My Garage	So, who wants to be my neighbour??
	() Thanks

14th January 2006, 17:12	#11
Sid Schumacher BHPian Join Date: Sep 2004 Location: Bangalore Posts: 262 Thanked: 3 Times	Looks like the Jayalalitha's doing a good job. She has been attracting a lot of Big Companies to TN...first Nokia and then comes BMW.
	() Thanks