ICML to pump in Rs 700cr for capacity expansion

New Delhi, June 14 (UNI) International Cars and Motors Ltd (ICML) today said it will invest Rs 700 crore over the next two to three years for capacity expansion of its newly launched multi-utility vehicle (MUV) 'Rhino Rx'.

''We have already invested Rs 300 crore for 'Rhino Rx' and plan to invest Rs 700 crore more,'' said Sonalika Group of Companies Chairman L D Mittal adding that out of the same, Rs 250 crore will be utilised for development of yet to be launched SUV.

He further stated that ICML is aiming to churn out about 5,000 MUVs every month by 2009 from its current capacity of 2,000 MUVs.

The company expects to sell about 10,000 units in this fiscal which would be increased to 48,000 units over the next three years.

''Currently we want to hold 10 per cent market share in MUV segment and gradually increase it,'' Mr Mittal claimed.

Targeting the commercial segment, the company today launched multi-utility vehicle 'Rhino Rx' priced between Rs 5,85,000 to Rs 6,95,000 crore.

It is equipped with 100 bhp Rover diesel engine, which is capable of reaching 0-100 km in less than 16 seconds.

'Rhino Rx' will be available in three different variants S1, S2 and DLX, and five colours wine red, orange, diamond, white and light green.

The vehicle will be initially available in four states Punjab, Haryana, Himachal Pradesh and Delhi and is expected to be released in the market by September this fiscal.

Equipped with five-speed transmission, direct turbocharges inter-cooled engine, the Rhino variants will be available in both single AC as well as dual AC models.

ICML is a subsidiary of Rs 3,000 crore Sonalika group, which is one of the top automobile and agriculture manufactures in India.

Apart from tractors, its product line includes MUVs, three wheelers engines and various farm equipments.

''Presently, the group has a market share of 12 per cent in the tractor segment and is willing to increase it to 15 per cent by next year.'' It exports the tractors to around 35 countries including South Africa, Sri Lanka, France, Zimbabme, Nepal, Bangladesh, Austria and many more.

UNI