United Industries & VTK Industries set up a ₹70-crore plastic parts unit in TN.

Injection moulding firms United Industries Plastic Pvt Ltd. and VTK Industries Pvt Ltd. have set up a manufacturing unit in Tamil Nadu under an equal joint venture UI Auto Plastic to produce plastic parts for electric scooters.

The factory has come up on a 10-acre site at Bargur SIPCOT, Pochampalli, Tamil Nadu at an initial investment of ₹70 crore. The plant was inaugurated recently.

The unit will manufacture various plastic components such as exterior parts, seat base assemblies, charger components, motor components, battery cell holders, etc for Ola Electric scooters. It will have the capacity to manufacture components for 3,00,000 scooters per annum, according to a statement.

The project currently supplies to Seoyon E Hwa, a Korean MNC which is a tier-1 vendor to Ola Electric.

The Plant will employ about 350 people and about 95 per cent of employment will be offered to people from villages in and around the plant, it said.

HBL