Automotive Axles (AAL), a manufacturer of rear drive axle assemblies, is planning to build a new greenfield plant in Madhya Pradesh, India and is now in the process of finalising the location.
AAL is a joint venture of auto components maker Bharat Forge (BFL) and Meritor, a US-based supplier of drivetrain, mobility, braking and aftermarket solutions for commercial vehicle markets.
For the first phase development of the new project, the company is planning to invest about INR750m ($13.47m), according to the Hindu.
The new plant is expected to be built near Indore to service auto OEMs in Pithampur area and the northern region of the country.
Currently the company has two manufacturing facilities near Mysore where it makes axles and braking systems.
The company also has an after-market distribution centre in Pune, India, while assembly is undertaken at its Pantnagar and Noida units.
At the new plant, which is expected to be operational by 2014, the company aims to add capacity by another 60,000 axles.
