Honda Motorcycle and Scooter India (HMSI), the country’s second largest two wheeler manufacturer has brought forward commissioning of its fourth plant in Vithalpur near Ahmedabad, Gujarat. This plant is the largest plant for any two wheeler maker in the world with an annual capacity of 1.2 million units. The plant was supposed to be commissioned only at the end of March 2016 but heavy demand has caused the company to take this step.
HMSI’s three existing plants are working at 100% capacity while the Honda Activa, the most popular scooter in the country as on date commands a waiting period of 6 months. HMSI has invested INR 1,100 crores into this new facility which is spread over 250 acres.
Its annual production at 1.2 million units makes it the largest scooter manufacturing facility wherein HMSI will employ approximately 3000 persons in the first two years. 22 vendors have also set up base around this new manufacturing facility and have invested approximately INR 900 crores. HMSI has confirmed that 97% of raw material will be locally procured.
With commissioning of this new plant in Gujarat, HMSI’s total annual production goes upto 58 lakh units while investments climb to INR 6,200 crores. Production capacities at the three other units stand at 16 lakh units in Haryana plant, 12 lakh units from the company’s Rajasthan plant and 18 lakh units from the Karnataka facility.
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The company has recorded over INR 17,000 crore worth of sales during FY15 and expects to end this financial year with turnover to the tune of INR 19,000 crores. Sales are conducted through HMSI’s 4,250 outlets across India while the company wishes to add 800 new touch points during this fiscal.