Force Motors will invest Rs 100 crore to set up an engine manufacturing and testing unit at Anjur Village, Chengelpet taluka, in Kancheepuram district of Tamil Nadu.
The proposed facility will be for a global passenger car manufacturer, with whom the company has signed an agreement to supply engines.
Though the name of the OEM (Original Equipment Manufacturer) was not disclosed, the facility can also cater to other OEMs in and around the plant.
The manufacturing facility will produce diesel engines, but if required it will also manufacture petrol engines.
The supply from this manufacturing plant is expected to commence by January 2015.