Considering the strategic advantages, the board approved to incorporate a wholly-owned subsidiary in Tamilnadu with an Authorised and Paid-up capital of Rs1cr in the state of Tamilnadu for this expansion.
Currently, Wabco exports from the Mahindra World City plant and caters to domestic customers from its Ambattur plant.
Wabco said that there is no scope for further expansion at both the plants as 100% of the land & floor space has been utilised.
That said, Wabco added that there is an immediate need for setting up a new manufacturing unit to cater to the increased demand and support growth in exports.
Earlier in May this year, the company's board approved entering into a lease deed with the SIPCOT Industrial Estate for expanding the Company’s operations.
Wabco earlier had identified land parcels at Phase II, SIPCOT Industrial Estate, Oragadam Tamilnadu with Land Parcel-A admeasuring 31.5 Acres and Land Parcel-B admeasuring 18.5 acres admeasuring 50 Acres on lease for 99 years towards setting up of a manufacturing unit.
Also, Wabco sighed an MoU with the Government of Tamil Nadu for this proposed expansion project, in the presence of Honourable Chief Minister of Tamil Nadu, Thiru M . K Stalin. The new project is envisaged to be a Center of Excellence for manufacturing excellence catering to both export and domestic customers.
Following the above, Wabco in its regulatory filing on Wednesday said that "considering the strategic advantages, the Board of Directors at their meeting held today have decided to incorporate a wholly-owned subsidiary in Tamilnadu with an Authorised and Paid-up capital of Rs1cr in the state of Tamilnadu for this expansion."
At around 12.04 PM, Wabco was trading at Rs7182 per piece marginally up on Sensex. The stock has touched an intraday high of Rs7500 per piece in the early deals.