New navigation system plant in Chakan

Pune: The first navigation system plant has been set up by Pune-based Bharat Navigation and the Korea-based J Communication Co.

The plant is located at Mohitewadi in Chakan and is a 50:50 joint venture. The venture would be known as Bharat Navigation Pvt Ltd and would deliver GPS equipment comprising video and audio players along with picture viewer and GPS tracking unit.

Mr Sumeet Salunkhe, Managing Director, Bharat Navigation, said the company would initially deliver 3.5, 4.3 and 7 inch car navigation products.

He said the production capacity of the unit is a maximum of 900 units on an eight hour shift basis and a minimum of 50 units. The full capacity utilisation would be reached by March 2009, he said. He said the plant is spread over an acre of land.

He said the company is looking at sales of one lakh units by March 2010 and of this about 40 per cent will go for exports. Japan will be the first export market followed by Thailand, Singapore and other APAC countries. The exports will begin early 2010, he said.

“The growing automobile market ensures immense potential for GPS equipment in the country. The car accessories market will also cross Rs 56,000 crore in another three years. We are trying to explore market opportunities in this segment through our new venture. The sales target for the first financial year is Rs. 50 crore,” he said.

Mr Salunkhe said by October 2009, the second phase of expansion would be completed, which would be spread over the next two acres adjoining the current land.

The second phase production unit would look at automotive black box, speed camera, electronic digital meter, mobile phone manufacturing, security surveillance devices etc. The investment would be close to $5 million, which would be invested by both the partners.

Mr Salunkhe said initially, the plant would be bringing in the products of the Korean company and would be retailing it. “Depending on the Indian customer requirements, the products would be customised and made available. Even for the second phase, the modus operandi would be the same,” he said.

J Communications is into production and supply of global positioning system (GPS) module, bluetooth GPS, GPS application, and two-way radio systems.