NEWSLINKS
BUDGET 2000
BUY BUDGET
Y2K BIZ FEATURES
INDIA & THE W.T.O.
NEW GOVERNMENT
SPECIALS
INTERVIEWS
COMMENTARY
BIZ IN THE USA
CREDIT POLICY
BUDGET 1999-2000
USEFUL INFO
ARCHIVES
SEARCH REDIFF

Vega Helmets to make defence aircraft and mini-bikes for youth

Helmet manufacturer Vega Auto Accessories Private Limited is setting up a separate venture for producing mini-bikes in addition to diversifying into production of lightweight aircraft and choppers for the armed forces.

The new company would remain under the umbrella organisation of Vega and would be run by the current VAAP management, S. Girish, divisional manager (finance), said in New Delhi.

The bikes are being produced under a technology transfer agreement with Cosmopolitan Motors Inc of the US.

The new company would exclusively develop and market the off-road minibikes Wasp. ''The bike has already been introduced in the export markets and has fetched good demand, particularly from the United States. We have already distributed 500 units in the US and have received fresh orders for the supply of 1,000 more such bikes to the US. This has forced us to segregate the mini-bike production from the helmet division,'' Girish added.

A separate unit has been set up at its existing facility in Belgaum, Karnataka.

The company, he said, is also in the process of developing a modified and improved version of the mini-bike for the export markets and an Indianised variant of the same this fiscal.

Regarding the foray into the defence sector, Girish said, VAAP has joined hands with Compact Compositi of Italy for producing lightweight aircraft, choppers and even rifle butts for the Indian armed forces. ''We have already approached the defence forces with the idea and are in the process of preparing prototypes of the chopper and the aircraft for them.''

The company would be setting up a separate unit for the purpose also at Belgaum.

''We have, in the initial phase, earmarked an investment of Rs 20 million for making these lightweight aircraft from carbon fibre. It is a low investment venture and can be ultimate replacement for steel...it is light in weight and is corrosion-free,'' Girish added.

The tie-up with Compact Compositi, Girish said, is purely technical and the Italian major would not be picking up stake in the venture.

''They are global consultants to several nations on the defence arena and we want to use their expertise to service our armed forces,'' Girish said.

VAAP, he added, is also negotiating a buy-back arrangement with Compact. ''They will be sourcing components and even fully-built aircraft to service their global requirements.'' The first prototype is expected to be ready by this month-end.

Regarding the mini-bikes, he said, the company has joined hands with TVS-Suzuki for sourcing the engines for these all-terrain dirt-bikes, targetted at kids in the 7-16 age group.

Powered by a 49cc single cylinder, 2-stroke air-cooled engine, the vehicle has been priced in the range of Rs 18,000. The bike has been designed as a non-geared vehicle and the speed has been regulated not to exceed 35km per hour.

In addition, the company is also working towards introducing a mini-bike for professional racing circuit. The bike, christened Dachshund, is powered by a 34cc single cylinder 2-stroke engine.

VAAP will also be launching a motorised skateboard 'Skabo' and a Go-kart 'Chaser' in the domestic market by mid-June.

The Skabo is powered by a 2-stroke single cylinder air-cooled 34cc engine, while the Chaser has a 148cc single cylinder, 2-stroke, air-cooled engine.

The company plans to supply these go-karts to several amusement parks across the country.

UNI

Business