Deccan Auto plans suppliers' park

The company, which set up `250-cr bus manufacturing facility in Medak district, will earmark 50-acre land for the ancillary park

Hyderabad: Deccan Auto Limited which established a luxury bus manufacturing facility in Medak district with an investment of Rs 250 crore is now gearing up to set up an exclusive industrial park for suppliers and auto component makers.

The company, a part of diverse business conglomerate promoted by NRI businessman MSRV Prasad, will earmark about 50 acres of land for the proposed park which is expected to attract investments to the tune of Rs 250 to Rs 300 crore. It will develop the land and invite prospective investors to set up facilities there.

“We have definite plans for developing an exclusive park for ancillary industries. We will be able to firm up the plans for the park in a year or so. Initially, we allocate 20 to 25 acres of land for the park which will eventually spread over 50 acres,” M Balaji Rao, Director, Corona Bus Manufacturing, and Principal Advisor to Deccan Auto’s bus manufacturing facility, told The Hans India.

Currently, Deccan Auto has 75 acre land at Kodakachani village in Medak district where it set up the bus manufacturing plant with capacity to produce 3,000 units of luxury city buses and coaches a year. Telangana Chief Minister K Chandrashekar Rao inaugurated the plant on Saturday. The plant, which came up 18 acres of land, is expected to generate 400 direct jobs initially.

The company plans to double the production capacity to 6,000 units in next six years. “We are going to acquire additional 25 acres land which will take our total land at the place to 100 acres. Our plan is to allocate 50 acres for ancillary park, while we will use remaining 50 acres for our own manufacturing operations,” he explained.

Automobile components such as window frames, side panels, seats and plastics, etc, are likely to be manufactured at the park. The company will gradually increase sourcing from the units located in the park in order to reduce its production cost.

“These units will not only supply components to our products, but also for other companies. Our idea is to make the units in the park self-sufficient and profitable. There are several bus body building units in Zaheerabad and Vijayawada. These component makers can supply their products to all those bus body building units,” said Rao, who played key role in the setting of Deccan Auto’s new plant in Medak district.

By P Madhusudhan Reddy