Xenitis move to turn Hooghly into a smaller version of Detroit

Kolkata, Apr 28 | Updated: Apr 29 2007, 08:23am hrs
Xenitis group Saturday signed seven memorandums of understanding (MoUs) with different domestic as well as foreign companies to turn Hooghly, one of the richest agricultural hubs in the state, into a new manufacturing base.

Santanu Ghosh, the chairman & managing director of the Xenitis group, laid out a future industrial landscape of the state in front of chief minister Buddhadeb Bhattacharjee and industry minister Nirupam Sen. His projects include assembling PC boxes & components, two-wheeler components and manufacturing passenger cars, two-wheelers, bicycles and mobile phones.

If Ghosh succeeds in executing his proposals, the Hooghly district may turn into a smaller version of Detroit.

Tata Motors is also setting up its small car factory at Singur in Hooghly.

Ghosh said Xenitis Infotech, which had a revenue of Rs 650 crore in the 2006-07 with a net profit of Rs 24 crore, under the agreement will supply PC cabinets and SMPS to 21 PC assemblers across the country.

"The MoUs will ensure a revenue of Rs 2150 crore in three years for our PC business," Ghosh said.

Ghosh also announced the availability of his two- wheeler brand Xpression in the 125cc segment with a promise of rolling out mobile phones by September in alliance with Longcheer Technology of Singapore.

In two-wheeler manufacturing, Ghosh has invested around Rs 300 crore and is employing around 500, but he declined to provide any specific investment figure for the future passenger car manufacturing facilities, which will be set up over 150 acres in Hooghly.

Regarding funds required for financing future projects, Ghosh said he is confident that his two new companies---Xenitis Telecom for manufacturing mobiles and Xenitis Auto for manufacturing

cars---will not face any problems.

"There is no single holding company. All our companies are independent.

As far as Xenitis Infotech is concerned, the equity debt ratio is 1:2, which is the industry standard," Ghosh said.