Triumph Pulls Out Rs. 850 Crore Investment in Karnataka, Moves to Manesar
Sameer Contractor
1 min read
Jun 20, 2016, 11:16 PM
Key Highlights
- Triumph planned to invest Rs. 850 crore in Karnataka for a plant
- Triumph even paid an initial amount to the state government for the land
- Triumph has moved its operations to Manesar
Due to the state government's uncooperative approach, Triumph Motorcycles India decided to pull out its investment from the state of Karnataka and is in the process of receiving a refund for the initial amount paid to the state. The British bike maker had initially planned to build a manufacturing facility in the Kolar district of Karnataka at an investment of Rs. 850 crore. Despite several reminders, the state government did not respond to Triumph's grievances regarding commencing operations; which prompted the company to move its operations to Manesar that has been more welcoming in comparison.
Triumph's proposed bike manufacturing facility in Kolar was said to spread over a 30-acre plot in Narasapura Industrial area. The production plant was said to have an initial manufacturing capacity of 2,50,000 high-performance motorcycles per year. The move would have created employment opportunities for thousands in the area.
An amount (undisclosed) was also paid as advance to the Karnataka Industrial Areas Development Board (KIADB) towards land acquisition and allotment. The project did receive the necessary clearances way back in 2012, much before the British bike maker's commencement of commercial operations, but did not move further due to the land-related issues.
However, given the lacklustre approach of the state government towards sorting out issues, Triumph decided to pull out its investment altogether and has asked for a refund of the initial investment. It has been reported that the state government has an equally sluggish approach towards the returning the refund amount. Carandbike.com got in touch with Triumph India, but the company refused to comment on the matter.
Manesar, on the other hand, has turned out to be one of the go-to option for auto manufacturers given the ease of doing business in the region. Tamil Nadu too has been proactive in handing out clearances and land to auto companies with Ford, Renault-Nissan and Hyundai handling their domestic and export operations from the state. With Andhra Pradesh and the newly formed Telangana also wooing manufacturers, the pull out certainly is a huge opportunity lost for Karnataka, especially with reports suggesting that four more investors have chosen to pull out of the state in recent times.
Having arrived in India in 2014, Triumph has been one of the most aggressive players in the premium motorcycle segment and is eyeing the numero uno position in terms of sales. At the 2016 Auto Expo this year, the company introduced the new Bonneville range that has been highly appreciated by enthusiasts, while the Thruxton R was launched earlier this month in the country. The company's next launch for India will be the updated Tiger Explorer series that will be introduced around the festive season.
Source: ETAuto.com
Triumph's proposed bike manufacturing facility in Kolar was said to spread over a 30-acre plot in Narasapura Industrial area. The production plant was said to have an initial manufacturing capacity of 2,50,000 high-performance motorcycles per year. The move would have created employment opportunities for thousands in the area.
Triumph India Head Vimal Sumbly on the new Thruxton R
However, given the lacklustre approach of the state government towards sorting out issues, Triumph decided to pull out its investment altogether and has asked for a refund of the initial investment. It has been reported that the state government has an equally sluggish approach towards the returning the refund amount. Carandbike.com got in touch with Triumph India, but the company refused to comment on the matter.
Manesar, on the other hand, has turned out to be one of the go-to option for auto manufacturers given the ease of doing business in the region. Tamil Nadu too has been proactive in handing out clearances and land to auto companies with Ford, Renault-Nissan and Hyundai handling their domestic and export operations from the state. With Andhra Pradesh and the newly formed Telangana also wooing manufacturers, the pull out certainly is a huge opportunity lost for Karnataka, especially with reports suggesting that four more investors have chosen to pull out of the state in recent times.
Triumph's next launches in India will be the 2016 Tiger Explorer series
Source: ETAuto.com
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