International tyre manufacturing major Michelin, which has entered into a tie-up with Apollo Tyres in November last year, has zeroed in on Maharashtra as the investment destination for setting up its production facility. The company intends to invest Rs 600 crore (Rs 6 billion) in two phases in the state.
Vishwas Dhumal, principal secretary (industries), Maharashtra, confirming this development said, "The French tyre manufacturer had earlier intended to go it alone in India around three to four years back considering the great demand for its tyres here. However, they have now firmed up their investments plans in the form of a joint venture with the Apollo Tyres group and are looking at Ranjangaon and Talegaon as the likely sites for setting up their manufacturing facility."
Maharashtra chief minister Sushilkumar Shinde told Business Standard, "In order to accelerate the pace of Maharashtra's economic growth, we have initiated a series of measures. Nashik, Mumbai and Pune would be carved as the golden triangle for industrial development. This region will be strengthened not only through existing physical infrastructure but also through the government policy support facilitating specific economic activities here."
According to another senior government official, with Apollo Tyres already having a manufacturing base in the industrial township created by the Maharashtra Industrial Development Corporation in Ranjangaon with ample additional land at its disposal, the likelihood of its joint venture partner setting up base there is probable.
The industrial zones set up by the MIDC at Chakan (near Pune), Sinnar (in Nashik) and Talegaon are also potential sites for the company. Michelin, after having committed its intention to set up base in western Maharashtra earlier has officially approached the Union government's Foreign Investment Promotion Board for clearance to their investment plans, Dhumal said.
"Last week, the memorandum of understanding between the company and the state government was revived," he added.
The Maharashtra government, on its part, has conferred the status of 'state guests' on the international tyre major as per its stated policy of offering a red carpet treatment to international major intending to invest in excess of Rs 500 crore (Rs 5 billion) in the state.
According to informed sources, Michelin initially intends to focus on the tyre requirements of heavy commercial vehicles (trucks and other large transport carriers) during which time it would meet the requirements of the passenger car segment through imports from its manufacturing facility based in Singapore.
