Bajaj Auto to hike overall production capacity to 50 lakh
One of the leading two-wheeler manufacturers which is also into three wheeler category, Bajaj Auto Ltd has said that it will increase its overall vehicle production capacity to 50 lakh units a year by the end of this fiscal. The company has three manufacturing plants at Waluj and Chakan in Maharashtra and Pantnagar in Uttarakhand and produces a total of 46 lakh units of two and three- wheelers annually. "Earlier this month, we have commissioned Plant II at our Pantnagar facility taking the capacity to 15 lakh units of motorcycles per year from 12 lakhs. By March 31 next year, total capacity at the plant will reach 18 lakh units per annum," Bajaj Auto Chief Financial Officer Kevin Dsa said. Besides, the company will be increasing production capacity of three-wheeler at its Waluj plant to 5 lakh units annually from the current 4.2 lakh units, he added.
The plant also produces bikes with a capacity of 15 lakh units per year. "Motorcycle capacity at Waluj will remain the same," Dsa said, adding there will not be any capacity hike at the Chakan plant, which has can produce 12 lakh units a year.
Asked about the investments, he said it is part of Rs 150 crore to Rs 200 capex slated for the ongoing fiscal. "This year we had earmarked between Rs 150 crore and Rs 200 crore for capex, including capacity expansion, research and development, modernisation, replacement and support systems," he said.
On the sales prospect of the company for the ongoing fiscal, Dsa said: "In the beginning of the year we had stated that we will be selling a total of four million two and three wheelers. We still maintain that."
The company today posted a net profit of Rs 682.08 crore, up 69.3 per cent from the same period a year ago on the back of its best ever quarterly sales. "We have been breaking sales record. The previous best was achieved in the preceding quarter of this fiscal," he said, adding the high profit were also mainly due to the company's good sales performance in high-end segment bikes, where the margins are high.
"Of our total bike sales, 86 per cent is from high end Pulsar and Discover motorcycles and that helps in profitability," he said.