Leading helmet manufacturer Steelbird Hi-Tech India on Thursday said it is investing Rs 150 crore across its three plants in Baddi (Himachal Pradesh) as it looks to cater to increased demand across the country following the implementation of the new Motor Vehicles Act.
The company, which sold around 9 lakh helmets in April-June quarter, saw sales jump in September with offtake increasing to 6 lakh units in just a single month.
With additional capacity in place by December this year, the company aims to sell around 11 lakh units per month.
"The company is boosting manufacturing capacity at Baddi with an investment of about Rs 150 crore. With a capacity to manufacture 44,500 helmets per day, we will employ over 2,000 new employees and will be selling more than 11 lakh helmets December onwards," Steelbird Hi-Tech India MD Rajeev Kapur said in a statement.
Currently, the company manufactures around 32,000 helmets per day.
With growing demand for helmets, Steelbird is looking to double its turnover to Rs 1,000 crore by 2020-21 from around Rs 500 crore at present.
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"The time is extremely favourable as the industry has a lot of support from the government," Kapur said.
The fresh investment will help the company expand its product portfolio and add more models to the existing range, covering various price points, he added.
After a long wait of three years, the Motor Vehicles (Amendment) Act, 2019 was passed by Parliament and received President's assent on August 9.
The Act saw manifold increase in fines for breaking traffic rules by driving without licence and insurance, riding two-wheelers without wearing helmets or four-wheelers without seat belts, and carrying more passengers than a vehicle's capacity.
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