New Delhi, Jan 18: Bajaj Auto Ltd. plans to set up a three-wheeler plant in Indonesia this year as part of strategies to expand its overseas business, a top company official said. The factory would initially produce three-wheelers and later, also make two-wheelers in the Southeast Asian country, Bajaj Auto's vice president (finance) Sanjiv Bajaj said.

"We are exploring whether to go in for a joint venture with an Indonesian partner or to set up our own plant," Bajaj said.

Bajaj Auto (BAL) is the second-biggest two-wheeler and the biggest three-wheeler maker in the country.

The proposed Indonesian venture would be BAL's second overseas plant. It now assembles and sells three-wheelers in Brazil for sale in the South American nation and neighbouring countries through a distributor.

"After Indonesia, we will expand the brazil venture by tying up with a new distributor," Bajaj said, but did not give details.

BAL would also start exports of two-wheeler models -- 'BYK', 'Caliber 115' and 'Wind 125' -- to Philippines through its technical partner, Japan's Kawasaki Heavy Industries.

The new overseas initiatives are expected to help the Pune-based automaker increase its exports by over 50 per cent to about 1.6 lakh units during 2003-04 and to over two lakh units in the year after, BAL joint managing director Rajiv Bajaj had said recently.

In value terms, exports are expected to grow to Rs 500 crore in 2003-04 and to over Rs 650 crore in 2004-05.
Bureau Report