ZF Commercial vehicle to open new factory; mulls Rs150 crore investment

10 Mar 2022 , 09:16 AM

ZF Commercial Vehicle Limited (formerly Wabco India) plans to infuse Rs150 crore in capacity expansion through a greenfield venture neighboring Chennai to fulfill its domestic and export demands. The company plans to build a new factory on a 44-acre site at Chennai’s manufacturing corridor Oragadam.

P Kaniappan, Head of Commercial Vehicle Solutions in India, stated in his press interview, “Our Mahindra City SEZ factory for exports is running at full capacity now. So, this new factory will focus primarily on catering to exports as the company has secured more orders now, alongside catering to some domestic demands.

The construction work for the factory is to be commenced by the end of March 2022, or the beginning of April. The factory is expected to be operative and start production by Q1 of 2023. This facility will focus primarily on manufacturing advanced braking system parts.
With the merger of ZF and Wabco, the groups intend to introduce some new products to the Indian market which shall be produced by this facility.

This new production is said to add an incremental income of about Rs700 crore as the company will continue to expand its capacity.

The company also plans new investment under the new PLI scheme as it is targeting some advanced technologies in the electric vehicle domain.

ZF Commercial Vehicle is currently trading at Rs7,200 up by Rs127.55 or 1.8% from its previous closing of Rs7,072.45 on the BSE.