CAPARO India has signed a technical agreement with Hyundai Motor Company, South Korea, to mark its foray into the luxury bus segment. Caparo's assembling plant would come up in the south. The 20-acre unit will have an annual capacity of 1,500 buses.

Caparo is evaluating locations like Sriperambadur, Oragadam and Nellore and expects to firm up its decision in three months. Caparo India country head Sunil Pahilajani said the technical tie-up will help the company to take a quantum leap and bring worldclass luxury bus to the domestic market. It will be unparalleled to any brand in India, he said, noting that production will commence by last quarter of 2008-09.

The pact will put both organisations on a common platform. It will lead to an association in manufacturing that will assist in entering new areas of common interests, he added.

Hyundai commercial vehicles president Choi Han Young said it was a bold and major step for Caparo. Although it was a huge challenge to take the first step in the commercial vehicle business, 30 years exposure and the premier position in the automotive field would be a big advantage for Caparo.

Caparo India new projects CEO Dev Mukherjee said the company's new venture will set new standards and become a benchmark for the luxury bus segment. Keeping customers aspiration for first class travel and fatigue reduction during long distance travel, Caparo would design transport mode that will offer comfort and style. Asked about Caparo's investment, he said it would run into "few hundred crores."

On whether the vehicles will have both names, he said it could have both names (Caparo-Hyundai) or another totally different name. However, the branding strategy has also not been firmed up, he said.

"The travel needs are growing and people want to travel in comfort," he said adding the company would pitch itself higher and bring buses that are on par with global standards as far as styling and comfort aspects are concerned.

Mr Mukherjee said that initially it would be a CKD (completely knocked-down) operation and gradually it will be localised (chassis parts, body). The 44-seater luxury bus will come in three variants and have a 320 hp to 380 hp range. Initially, the project will have a potential to generate 200 jobs.


Source: ET