Rising land prices in and around Ahmedabad has forced three-wheeled car manufacturer Atul Auto Limited, cancel has proposed Rs 150 crore expansion plan. Listed company is now seeking 100 acares of land in other parts of the state or even outside it.

“The arrival of Tata Motors, Ford and Peugeot in Sanand led to high prices of land in the outskirts of Ahmedabad. Following the announcement of Maruti, landlords and traders believe they can obtain higher prices and therefore the backup in previous agreements. Private ownership of land with which we were negotiating the exorbitant increase in the eleventh hour, forcing us to seek new location, “said Vijay Kedia, CMD of Rajkot based Atul Auto Limited.

The company plans to increase light commercial vehicles in the segment with four wheels. The proposed plant was to have a production capacity of 30,000 units per year. The diversification of three-wheeled motorcycle is part of the growth strategy of the company and as a protection against falls from a particular segment.

The company believes that the new position can affect its business plans. “But we have no choice,” said Kedia.

Atul Auto to increase the capacity of its current location in Gujarat with an investment of Rs 60 crore and is looking for technical cooperation in the expansion. It is expected to double its three wheels 24 000 48 000 units and 54 000 years ago, 2013-14. The new models are in line for launch in January-March quarter of 2012. Some of these figures will be launched with greater fuel efficiency than many of its current products. The technology work to improve fuel efficiency is going on R & D center in Pune.

To reduce pressure on its facilities in India, Atul Auto plans to set up assembly lines in Bangladesh and Sri Lanka. A 12,000 units per year, a company expects Rs 150 crore in its operations in Bangladesh. He was arrested last year exports to meet growing demand from national retailers. Unlike Bangladesh, which has an alliance with its technology partner that has invested in the installation of infrastructure, the company plans to adapt a model company in Sri Lanka together. Discussions are at an advanced stage with the pair of Sri Lanka and the final decision can be taken within a few months.