Daimler sets up new 400 acre plant in Chennai specifically for production of BharatBenz Trucks

A brand new manufacturing plant and R&D Centre has been set up at Oragadam, Chennai on Wednesday April 18, 2012 by Daimler AG. This plant is commissioned on a 400 acre plot at a total investment of Rs.4,400 crores. The facility was inaugurated by Chief Minister of Tamil Nadu, Mr. Selvi J Jayalalithaa. The plant will have initial production capacity of 36,000 units per annum which will be increased to 70,000 units in due course. Production is expected to commence from the 3rd quarter of this year.

This facility with be one of a total three such Daimler truck plants across the globe from where assembly of their trucks and production of components will be done. The company has an aim of bringing in 17 BharatBenz commercial vehicles by the year 2014 and is committed to offering their clients robust and reliable vehicles to their Indian clients.

The company has already taken on 1400 employees which comprise of mainly Indians. The company will also be focusing in localization with 40% of their suppliers being situated in a radius of 40 kms from the plant. The Oragadam plant has the capacity to roll out one heavy duty vehicle every 11 minutes and one light duty vehicle every 22 minutes. The plant will bring out light and heavy duty trucks for both domestic and international markets including ASEAN and Africa.

Press Release

Daimler Opens New Production Plant in Chennai for Indian BharatBenz Trucks

·        Tamil Nadu Chief Minister Selvi J Jayalalithaa inaugurates the state-of-the-art 400-acre plant
·        Total investment of Rs 4,400 crore by DICV, including manufacturing plant as well as research and development
·        Initial production capacity of 36,000 units per year, to be ramped up to more than 70,000 units per year
·        Start of production of BharatBenz heavy-duty trucks scheduled for        3rd quarter of 2012

Chennai:  Following the construction in a record time of about 24 months, the new state-of-the-art production plant of Daimler India Commercial Vehicles Pvt. Ltd. (DICV), a wholly owned subsidiary of Daimler AG, was inaugurated by Tamil Nadu Chief Minister Selvi J. Jayalalithaa at Oragadam, near Chennai today.

At a festive ceremony, Selvi J Jayalalithaa inaugurated the 400-acre manufacturing plant along with the integrated research and development center and the state-of-the-art test track. The plant is one of only three Daimler truck plants worldwide to combine truck assembly and components production at one location.

The total investment of DICV is Rs 4,400 crore, including the manufacturing facility for BharatBenz brand trucks as well as research and development. The start of production of the BharatBenz heavy-duty trucks are scheduled for the 3rd quarter of 2012.

Speaking on the occasion, Dr. Dieter Zetsche, Chairman of the Board of Management Daimler AG and Head of Mercedes-Benz Cars, explained, “Our new Oragadam-Chennai plant shares Daimler’s stringent quality standards with its sister plants around the world and is unique at the same time. It is the only Daimler plant in the world that houses products which combine Indian engineering with German and Japanese DNA under a single roof. This way, we are optimally positioning ourselves for one of the world’s strongest and fastest-growing truck markets.”

The Oragadam plant will produce the versatile BharatBenz product range for the Indian volume market. While some BharatBenz truck models are based on the Mercedes-Benz Axor platform, others are built on the Fuso Canter series. The plant in Chennai has an initial production capacity of 36,000 units per year and is designed to allow an increase up to more than 70,000 commercial vehicles per year.

Andreas Renschler, Daimler Board of Management member responsible for Daimler Trucks and Daimler Buses, emphasized at the plant inauguration in India, “DICV is an outstanding example of Daimler Trucks’ Global Excellence strategy. Our worldwide production network and our global research and development efforts enable us to develop, manufacture, and sell trucks in India, for India. We do all of this in close proximity to our customers, for our customers.”

BharatBenz trucks are robust and reliable vehicles for the modern domestic segment, which illustrates the consistently increasing demands of the Indian customers. This segment currently accounts for four percent of all trucks in India, but this figure is expected to rise to almost 80 percent by 2020. With a product portfolio of 17 BharatBenz commercial vehicles by 2014, DICV is preparing for the promising Indian truck market, which has developed into the world’s third largest market with a volume of more than 330,000 vehicles in the weight classes of 5 to 49 tonnes in 2011.

To benefit from India’s market potential in the commercial vehicle segment, the plant in Oragadam-Chennai was built for the future local production of BharatBenz trucks. At the celebratory inauguration, Marc Llistosella, CEO and Managing Director of DICV, declared, “Filled with pride and joy, I dedicate today’s plant opening to the employees of Daimler India Commercial Vehicles. Our work-force is primarily Indian and has steadily increased to include more than 1,400 employees today.”

Llistosella added, “Our focus on localization has resulted in more than 40 percent of our suppliers being located within a 40-kilometer radius of the plant. Overall our BharatBenz trucks will have a localization rate of 85 percent in India.”