Chennai: Pune-based Force Motors expects to triple its revenue to Rs 3,000 crore in next three years driven by its contract manufacturing business for leading automobile companies like Mercedes Benz and BMW.
"We are in OEMs business. We make vehicles. We work for OEMs like BMW, John Deere. When I say we are targeting Rs 3,000 crore revenue, it will be generated out of these businesses. The time frame we expect to be about three years," Force Motors Managing Director Prasan Firodia said here.
"Currently, the revenue generated (from OEMs business) is around Rs 1,000 crore," he said.
Firodia was talking to reporters after the formal inauguration of the Chennai plant that would produce power trains to German car major BMW.
"This is the first outsourced plant globally for BMW. Nobody (No other manufacturer) has done this before. We are the first company in the world to do powertrains for both Mercedes (Benz) and BMW which is very unique thing."
The company is setting up a dedicated manufacturing facility for German luxury car maker Mercedes Benz.
"About our plant at Chakan, Pune, we are building up brand new facility for Mercedes Benz with higher (plant) capacities and everything," Firodia said.
Declining to reveal the investments proposed and other details about the unit, Firodia said the company had supplied over 50,000 engines to Mercedes Benz since it formed a partnership with Mercedes Benz in 1997.
Force Motors currently assembles engines for Mercedes Benz C, E, M Class range of cars.
Referring to the Singaperumalkoil plant, about 55 km from Chennai, he said, "an investment of about Rs 200 crore at the facility and the plant will make diesel engines for BMW range of cars and SUVs."
The plant was formally inaugurated by Union Heavy Industries Minister, Anant Geete. It has been operational since January and already supplied about 3,000 units.
Firodia said the facility, spread across five acres, was capable for the company to ramp up the existing unit as and when required by BMW. "This plant has a total of 100 engineers all trained by BMW," he said.
The company was setting up two manufacturing facilities, one each in Madhya Pradesh and Gujarat to manufacture auto-components. "We will be inaugurating our facility in Dewas, Madhya Pradesh shortly", he said but did not elaborate on details on the project.
Force Motors sells vehicles including small commercial vehicles, multi-utility vehicles, light commercial vehicles, sports utility vehicles and agricultural tractors.
