The company plans to export CKD kits to the tune of $5 million this calendar year and has set a target of $35 million (about 20,000 kits) for the year 2001, according to Ford India managing director Phil Spender.

Addressing a select group of presspersons, he said that Ford India viewed its exports on a long-term basis and CKD form was the ideal and a viable option considering the entry barriers in various markets. Ikon is a global platform and India is the base for it. These exports, he added, will enable the company to broaden its business base and also meet its export obligations. Ford India has imported capital goods to the tune of $45 million by availing concessional import duty under the export promotion capital goods (EPCG) scheme. Under this scheme, it has to mandatorily export products worth Rs 900 crore over the next five years.

These exports will give Ford India the critical mass to achieve clear profits. It requires a volume of 40,000 units to achieve a reasonable return on its Rs 1,700 crore investment in India. With the domestic sale of Ikons likely to touch 21,000 units this calendar year and CKD exports target of 20,000, Ford India is likely to post reasonable profits in a fully accounted basis next year, said vice-president finance David E Friedman.

The export plant, measuring 5000 sq meters, is managed by Ford India in association with TVS Lean Logistics - a TVS group company. By adopting global standards of CKD pack engineering and Ford's international software system, the export plants hope to meet the stringent requirements of CKD exports. Exports of CKD kits by Ford India is the first by any car manufacturer from the country. The company has tied up with its vendors to supply the components required for exports. The kit shipped out of India will have all components of a built-up Ikon except engine, seat and minor trimmings.

Ford India has geared up its production levels to match its export requirements. The stamping plant is already working for two shifts and will go to three when export demand picks up. As far as the assembly line is concerned, Mr Spender said that the domestic demand would decide the production increase.