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Hero Honda to pump in Rs 200 cr for 3rd plant; hire 600 people
New Delhi, Apr 12: Hero Honda Motors, India`s largest motorcycle maker, would invest Rs 200 crore to set up a third plant by the end of 2004 and hire a workforce of 600.
New Delhi, Apr 12: Hero Honda Motors, India's largest motorcycle maker, would invest Rs 200 crore to set up a third plant by the end of 2004 and hire a workforce of 600.
"We will pump in Rs 200 crore to establish our third plant. Initially, we will hire a workforce of 600," its chairman Brijmohan Lall Munjal said on the sidelines of a news
conference.
Hero Honda Motors, in which Honda Motors Corp. of Japan and the Munjal family own 26 per cent stake each, has two existing plants in Daruhera and Manesar, both in Haryana.
"We have done a part of feasibility study and identified four states to zero down on one for the plant. The four states are Tamil Nadu, Rajasthan, Maharashtra and Karnataka," he said. The plant should be ready by the end of this calendar year with an initial capacity of 2-3 lakh units annually.
Asked whether the company would borrow the money to fund its proposed plant, Munjal said "we have huge cash reserve. We do not borrow".
The issue of the third plant has been hanging fire since almost two years as motorcycle sales decelerated a bit during 2002-03, largely due to deficient monsoon and the imbroglio over the implementation of value added tax (VAT) regime.
Motorcycle sales, however, started picking up since the second quarter of last fiscal due to bountiful monsoon and readily available low interest rate loans. At present, the two plants produce 2.6 million motorcycles.
Bureau Report
Hero Honda Motors, in which Honda Motors Corp. of Japan and the Munjal family own 26 per cent stake each, has two existing plants in Daruhera and Manesar, both in Haryana.
"We have done a part of feasibility study and identified four states to zero down on one for the plant. The four states are Tamil Nadu, Rajasthan, Maharashtra and Karnataka," he said. The plant should be ready by the end of this calendar year with an initial capacity of 2-3 lakh units annually.
Asked whether the company would borrow the money to fund its proposed plant, Munjal said "we have huge cash reserve. We do not borrow".
The issue of the third plant has been hanging fire since almost two years as motorcycle sales decelerated a bit during 2002-03, largely due to deficient monsoon and the imbroglio over the implementation of value added tax (VAT) regime.
Motorcycle sales, however, started picking up since the second quarter of last fiscal due to bountiful monsoon and readily available low interest rate loans. At present, the two plants produce 2.6 million motorcycles.
Bureau Report