Auto engine and transmission component maker, Avtec, subsidiary of CK Birla Group, plans to invest about US$25m expanding capacity at its four units in Pitampur, Hosur, Chennai & Kharagpur as well as in research & development.

“We are planning to make the investment mostly in plant machinery and equipment in the next two years,” CEO Prabhakar Kadapa said.

Avtec is one of two suppliers of transmission sets for the Tata Nano and is doubling capacity at the Kharagpur plant to 10,000 sets a month, within the next four months. Capacity will be further hiked to 14,000 sets monthly by March 2011 to meet growing Nano production to the maximum current capacity of 250,000 units.

Avtec recently won new orders for engine and axle parts from Daimler Commercial Vehicles and also supplies GM, Ford, Mitsubishi-Hindustan Motors and Tata Motors' new truck range.

“We are also working on a number of new products for various car models to be launched in the Indian market in [future],” Prabhakar added.