With a new facility going on stream in 2008 THE Indian Irizar-TVS company wants to produce at least 2,000 buses in the current fiscal year, targeting a further increase of the production to more than 2,500 buses for 2009-10 and afterwards.
Irizar-TVS, a joint venture between Ashok Leyland Ltd, Irizar S. Coop of Spain, and TVS Ltd, is a major player in the bus body building industry in the Indian Tiruchi belt. Set up in the year 2001, the company currently has two facilities. The Indian joint venture is capable of building bus bodies that comply with European standards. It currently builds bodies for both the domestic and export markets, though exports account for the most.
The company built 1,400 buses during the year 2006-07 as against 1,057 buses in the previous year. In 2006-07, of the 1,400 buses it built, 1,170 were exported and the remaining for the domestic market. The company builds all Ashok Leyland buses that are meant for export.
As there is a capacity constraint, the company is planning to expand it's capacity at an estimated investment of Rs 35 crore, a new 2 lakh sq.ft. facility going on stream later in 2008, enabling the company to produce at least 2,000 buses in the current fiscal and targets rolling out over 2,500 buses in 2009-10.
Apart from this, Irizar has also been developing new luxury buses for the Indian market. It has transferred the technology to build Intercentury bus bodies and also trained people from the Indian outfit. Irizar-TVS has built a few buses on this platform on Ashok Leyland's 260 hp rear-engine chassis.
Irizar-TVS closed last year (2007-08) with a turnover of Rs 75 crore with exports accounting for Rs 60 crore. In the previous year it earned Rs 54 crore with export income at Rs 40 crore. "As there is a huge demand in the domestic market, we hope to double our domestic sales and also substantially increase the export segment during the current financial year," said Srinivasan. It currently employs close to 1,000 people and may add another 300 during the year.
