Shares of car and auto part manufacturer TVS Motor Ltd, were trading 2% lower on 12 February despite the company announcing signing an agreement with the Karnataka Government to invest over Rs 2,000 crore over the course of five years for setting up a global capability centre (GCC) and expand its operations in Mysuru.
A GCC is a company-created captive entity that manages IT and other business functions.
The Chennai-based business declared that it would also set up a new test track and office space when it signed a Memorandum of Understanding (MoU) at the Global Investors Meet, Invest Karnataka 2025, on 11 February.
TVS Motor is the fourth-largest two-wheeler firm globally, with 5.8 crore customers.
“We envision a capability centre that will draw top talent and great ideas and have research capability to be the birthplace of next-gen bikes. The office and allied infrastructure will bring together engineers, designers, innovators, Al and ML experts, who will define what is next,” TVS Motor’s managing director Sudarshan Venu said.
The company’s Mysuru factory employs over 3,500 people and has an annual production capacity of 15 lakh cars.
The export profits from the Mysuru facility amount to around Rs 1,200 crore of the total income, which is around Rs 7,600 crore.
TVS aims to double its overall profits and exports from its Mysuru plants.
The business also operates two more plants in Hosur, Tamil Nadu, and Nalagarh, Himachal Pradesh, India.
The Karnataka government launched the new Industrial Policy 2025-30, which aims to increase manufacturing by 12% a year, spend Rs 7.5 lakh billion, and create 20 lakh jobs by 2030.
The state has implemented a single window AI-powered system in partnership with Microsoft to boost corporate efficiency and speed up industrial approvals.
Chipmaker Lam Research announced an investment of Rs 10,000 crore at the Invest Karnataka-2025 event, which concludes on 14 February.
At 12:10 pm, the shares of TVS Motors were trading 0.35% lower at Rs 2,476.20 on NSE.
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