NEW DELHI, Mar 9: Daewoo Motors has decided to go in for a debt of Rs 200 crore to part finance its capacity expansion from 72,000 cars to 1.5 lakh cars.The equity base is also expected to be expanded by about Rs 100 crore.This will take the total investment to over Rs 3,000 crore. The bulk of the investment is expected to flow in 1998-99. The company has already invested Rs 2700 crore in the first phase.
The company has not taken a decision on whether it should rupee loans or foreign borrowing, Daewoo Motors India Ltd (DMIL) managing director SG Awasthi said.
The second phase of Daewoo Motors includes the expansion of the manufacturing facility from 72,000 to 1,50,000 cars per annum by 1999. Other details regarding the modality and areas where the investment would flow in were not available. A statement from the company said "this is an issue on which the board has taken no decision as yet". The company is slated to close the year with an export turnover of $20 to $30 million.
It would beginexporting engines and gear boxes manufactured at the Surajpur plant in Uttar Pradesh, from this month. Daewoo Motors has already exported 25,000 cylinder heads worth $5 million to Korea last year. Fifty per cent of the total production from this plant, including engines, gear boxes and other components, would be exported.
