Toyota Kirloskar Auto Parts will be setting up its third manufacturing plant for automotive components at Bidadi in Karnataka.

The company is investing Rs 500 crore to set up the plant. The state government had recently approved the company’s proposal to set up a third plant to manufacture castings and machine parts, the MoU for which was signed at the Global Investors’ Meet in Bangalore. TKAP plans to manufacture 2,40,000 castings of engine parts and 120,000 units of machine parts. The company has sought an additional 17 acre from the state government. The Karnataka Industrial Areas Development Board will acquire the land for the company, provided the company secures consent for this from 80 per cent of farmers who own the land. The board has also sanctioned 6,00,000 litres of water per day for the new plant.

The company already operates two manufacturing plants at Bidadi - for exports, as well as the domestic market. At these plants, the company manufactures manual transmissions for ‘Fortuner’ units manufactured in India, Thailand and Argentina. It also produces front and rear axles and propeller shafts for the ‘Innova’ units made in India.