Lombardini India Pvt Ltd, a 100-per cent subsidiary of Lombardini, Italy, has acquired the engine project of Greaves Ltd at Aurangabad for a consideration of Rs 11 crore.

``With this investment, Lombardini has come into India for the long haul. In the future, the company intends to make large investments and garner a major chunk of the market not only in the auto sector but also in the industrial and agricultural sectors,'' said Mr Shekhar Datta, CEO, Greaves Ltd.

According to a company release, the engines to be produced at this plant will include a family of 422 cc diesel and gasoline engines with integral transmission. These are ideal for automotive applications ranging from 9 hp to 13 hp.

These engines, manufactured under licence from Piaggio, Italy, will be sold to the Piaggio plant at Baramati for its Ape 3-wheeler apart from other customers.

The first commercial batch of engines was expected to roll out by end 2002, the release said. Lombardini's target is to reach an annual production of 50,000 engines in the third year of commercial operation.

October.2001