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Global Automobiles ties up with Chinese firm
By agencies
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Wednesday, 22 February 2006, 20:30 IST
KOLKATA: West Bengal is going to get another two-wheeler manufacturing unit within the next few months. The first joint venture to come up in technical and financial collaboration was with the Salim Group of Indonesia.
Now the second is in technical collaboration with Guangzhou Motors Company of China. In order to set up the second two-wheeler project at Chinsura I Hooghly dirstrict was signed between
Global Automobiles Pvt Ltd, a wholly owned subsidiary of the Xenitis Group and Guangzhou Motors Company.
The first phase of the plant is expected to be operational by June-06 with an investment of $68.18 million. The assembling job of two-wheelers would be based on 100 percent imported component, which will be imported on a semi-knocked-down (CKD) condition.
The company plans to enter the market with three variants of the product under the brand name "Xoom", that is, 100cc, 125cc, 150cc motorcycles. Guangzhou Motors will provide technical support for setting up the assembly line, production process and service network, while the entire cost will be borne by the Xenitis Group.
Announcing this, Principal Secretary in the Ministry of Commerce & Industry, Sabyasachi Sen said that the State Government had welcomed the initiative and extended its unstinted support for the successful implementation of the project.
Initially, the company has plans to assemble 30,000-35,000 motorcycles per month. After shifting the plant to a new location, production would be raised to 50,000 to 60,000 units per month. He clarified that debt-equity ratio of Global Automobile would be 2:1.