Tata Motors enters into distribution agreement in Myanmar
29 May 2012
Tata Motors has entered into a distribution agreement with Apex Greatest Industrial Co Ltd. (AGI), Myanmar, for its commercial vehicles and passenger cars in Myanmar, in its bid to expand its global manufacturing foot print, which is currently spread across the UK, South Korea, Thailand, Spain and South Africa.
In March 2010, Tata Motors had signed a turnkey contract with Myanma Automobile & Diesel Industries Limited (MADI), an enterprise under the government of Myanmar's 'ministry of industry-2', for setting up a heavy truck assembly plant, at Magwe, in central Myanmar, funded by a $20 million line of credit from the government of India.
The plant, inaugurated in December 2010, is now operational. With a highly flexible chassis and frame assembly line, along with cab manufacturing, paint shop and trimming set-up, the plant has a capacity of producing 1,000 vehicles per annum initially and has the flexibility of augmenting up to 5,000 per year.
Last week Tata motors' senior executives R T Wasan and Johnny Oommen, who head international businesses for the company's commercial vehicles and passenger vehicles respectively, signed a purchase and sale agreement at Myanmar's capital Nay Pyi Taw with the chairman of AGI Myanmar, U Kyi Thein.
Tata Motors Limited is India's largest automobile company, with consolidated revenues of Rs1,23,133 crores ($27 billion) in 2010-11 and is the leader in commercial vehicles in each segment, and among the top three manufacturers of passenger vehicles.