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Two-wheeler maker Honda Motorcycle and Scooter India Private Limited (HMSI) plans to invest around Rs 490 crore during the current fiscal to raise its production capacity from 4 million units per annum (pa) to 4.6 million units pa. The company plans to add 600,000 units pa at the Narsapura plant near Bangalore, which now makes 1.2 million units pa.
Yadvinder Singh Guleria, vice president, sales and marketing, HMSI said, " We are going to increase our production capacity during current financial year. New line of production will be developed at Narsapura plant near Bangalore."
So far the HMSI has invested around Rs 900 crore on the Narsapura plant, and for capacity expansion would invest another Rs 490 crore by the end of March 2014.
Guleria added, "An additional capacity of 600,000 units will be created in the Narsapura plant, which will take its annual capacity to 1.8 million units by end of this fiscal. We are aiming to achieve 43 per cent growth in sales during this fiscal. We are targeting to sell 3.93 million units of our various products."
HMSI has started production of its largest selling automatic scooter, Activa at Narsapura from July this year. The company produces 50,000 units Activa every month in the plant. Earlier in June, the Narasapura plant also started production of Honda's 110 cc mass segment motorcycle Dream Yuga.
The company has two other plants at Tapukara in Rajasthan, Manesar in Gurgaon and Narsapura, near Bangalore in India. The third or the Karnataka plant started production from May 2013.
