Company Info

Industrial Production

- plant location

V. S. Thiruvengadaswamy, Chennai, India

VST Tillers plans unit at Hosur


With rising demand for tractors, VST Tillers Tractors Limited (VTTL) is setting up a second factory at Hosur in Tamil Nadu. The company is investing Rs.100 crore in the new facility that will produce 30,000 units of tractors per annum.
Arun Surendra, Managing Director, VST Motors, told The Hindu that the factory, being built on 14 acres would be completed by the end of 2012. VTTL's existing Bangalore facility is producing to its full capacity of 10,000 units of tractors and 35,000 units of tillers annually. The company has shelved the earlier proposal to shift the entire tractor manufacturing base to Hosur from Bangalore. Mr. Surendra said that VTTL would continue with both the facilities for some time. The company aims to double its current turnover of Rs.550 crore by 2013. The group also has an NBFC (non-banking finance company), Gove Investments & Finance Limited, for funding its captive customers. He said this business would see a growth in the coming years. At present, the company was providing 90 per cent of its finance to its Tamil Nadu customers and only 10 per cent to its Bangalore customers. This ratio would change in the next few years, he added. Mr. Surendra said VST was planning to scale up the NBFC business pan-India and start lending to other borrowers too.
The VST group, consisting of VTTL, VST Motors, India Garage and Gove Investments apart from a few other dealerships, had a turnover of Rs.3,000 crore last year.
The VST group is now celebrating 100{+t}{+h} anniversary of its founding.
The group was founded by V. S. Thiruvengadaswamy in 1911 in Bangalore.
It subsequently expanded its operations to Chennai in 1942 with a dealership to distribute Austin and Studebaker cars.
In 1954, VST Motors became a dealer for Tata Motors' trucks and opened showrooms across Tamil Nadu.
Following the success in the trucks business, VST entered into an agreement with Mahindra & Mahindra to sell its products.
In 1959, it opened India Garage to market Mahindra vehicles.
In recent times, the company has opened dealerships for leading car brands such as Ford, Volkswagen and Jaguar Land Rover.
The group also has dealerships for leading two-wheeler brands such as Bajaj and Honda.