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