Force Motors plans to set up a manufacturing facility at Chakan near Pune to produce a range of parts including engines, gearboxes and axles with annual capacity of 50,000 sets.
The company's board has approved, as per the circular dated February 7, establishment of factory, Force Motors Ltd said in a filing to the BSE.
"The company already owns the land and necessary steps to convert the use of the land and obtain necessary permissions for construction and establishment of such a factory are being taken," it added.
Last year, the Pune-based firm had announced plans to invest around Rs 1,000 crore over the next four years on various activities, including product development and setting up of a dedicated facility for assembling engines for BMW vehicles.
The company sells a range of vehicles, including small commercial vehicles, multi-utility vehicles (MUVs), light commercial vehicles, sports utility vehicles (SUVs) and agricultural tractors.
Force Motors has two plants in India. Its small commercial vehicles and tractors are rolled out from the facility at Pune, while others such as SUVs, MUVs and other commercial vehicles are produced from Pithampur in Madhya Pradesh.
Force Motor's shares closed at Rs 1,227.95 apiece, down 2.05 per cent, on the BSE.]