The joint venture by German auto major Daimler with India's Hero Group plans to set up a truck manufacturing facility in the southern Indian city of Chennai, capital of Tamil Nadu state, it was announced Monday, according to dpa. The joint venture Daimler Hero Commercial Vehicles Limited signed a memorandum of understanding with the Tamil Nadu government in Chennai, a company release said. The company plans to set up a production plant at Oragadam in Kanchipuram district which lies on the outskirts of Chennai. "The joint venture planned to start construction of the new factory soon to produce commercial vehicles under a new brand name for the Indian market and for export," the statement said. Starting 2010, the plant is expected to roll out 70,000 trucks in the initial phase. The total investment in the plant, spread over five years, is expected to be 700 million euros (about 1,095 million dollars). At peak capacity, the plant is expected to employ 3,000 people, a Tamil Nadu government release said. Daimler, which owns the Mercedes-Benz and Freightliner truck brands, holds 60 per cent equity in the new company, and the remaining 40 per cent is with the Hero Group, which has a range of products and is a leading motorcycle manufacturer in India.
