HMSI to invest Rs 585 cr to hike capacity at 3rd plant in Karnataka

New production line at existing plant site will add 600,000 units a year to take total capacity to 2.4 mn units by 2016 end

Honda Motorcycle & Scooter India (HMSI), today announced an investment of Rs 585 crore to increase two-wheeler production capacity at its third plant at Narsapura in Karnataka.

A new production line will be set up within the existing plant site that will add 600,000 units annually to take up the total capacity of the facility to 2.4 million units before the end of 2016, HMSI said in a statement.

"Combined with the additional capacity of upcoming fourth plant (in Gujarat), which is scheduled to become operational in the first half of 2016, this expansion will increase HMSI's overall annual production capacity to 6.4 million units," it said.

The capacity expansion "entails fresh investment worth Rs 585 crore in Honda's Narsapura plant in Karnataka", it said.

The company's two other plants are at Manesar in Haryana and Tapukara in Rajasthan.

HMSI President & CEO Keita Muramatsu said: "Honda is strengthening its 'Make in India' resolve through steady and strategic investments with a long-term objective of creating 39 per cent additional capacity within 3.5 years.

"We are planning to increase the number of associates in the plant by approximately 1,900. This investment will provide new opportunities for expansion of brand Honda in the largest two-wheeler market of the world."

HMSI sales grew 22 per cent in the April-February period this fiscal at 40,53,867 units as against 33,29,882 units in the same period last fiscal.