Moscow, Sep 19 (UNI) Russian tractor major Traktornye Zavody is planning to set up a production unit in India to assemble small industrial track-type tractors.
Plant's director Mikhail Bolotin said the production unit to be built at the estimated cost of one million dollars to 1.5 million dollars, will be launched in 2008.
It is expected to assemble up to 200 vehicles a year from 2009, RIA Novosti news agency quoted Mr Bolotin as saying.
The price of a tractor, depending on the model, will be between 1,50,000 dollars and 2,70,000 dollars.
The setting up of its own production unit in India will enable the plant to save on high import duties, and, therefore, to sell its tractors at a lower price.
According to Russian experts, cheaper labour and infrastructure will reduce production costs by 30 per cent. The tractor plant has been on Indian market since 1999.
The company also plans to invest ten million dollars to manufacture air conditioners on the same site through the Malaysian company Dunham-Bush, which the holding bought at the end of last year.