Bajaj Auto Ltd would spend Rs 150 crore (Rs 1.50 billion) for new products and capacity expansion, enabling it to surpass the 10-12 per cent two-wheeler industry sales growth expected this year and set up an assembly plant in Indonesia, a top company official said on Thursday.

The Rs 150 crore capital expenditure would be for launching two motorcycles and two scooters besides doubling capacity at the Chakan (Maharashtra) plant and setting up an R&D centre, its executive director Sanjiv Bajaj said in Ghaziabad.

"We will surpass the 10-12 per cent sales growth the two-wheeler industry is expected to log this fiscal," he said.

The company will set up an assembly plant in Indonesia, followed by Brazil and Latin America. The company has also conducted a feasibility study to sell motorcycles in Nigeria.

Bajaj Auto is scouting for a partner in Brazil to put in equity there for the assembly unit, which should be operational by the end of 2005-06. The company has already opened an office in Dubai to cater to the markets in the Middle East.

Bajaj Auto, India's second-biggest motorcycle maker, will roll out two motorcycles -- one an entry-level and the other in the executive segment, codenamed K-60.

The Pune-based firm will also launch an automatic scooter Wave and conventional scooter Chetak, he said, adding an upgrade of the 100cc motorcycle BoxerCT would hit the road soon followed by other variants of Boxer models.

The capacity of the Chakan plant will be doubled this fiscal from 350,000 units annually now and the R&D centre will be set up in Pune.