Honda Motorcycle to set up a plant in Andhra Pradesh
Honda Motorcycle and Scooter India (HMSI), a subsidiary of Honda Motor Company, which is slowly evolving its two-wheeler business in India, is now going for a third plant after exces demand for its products. According to agency reports, the company will soon set up its third two-wheeler manufacturing facility in Andhra Pradesh with an investment of Rs 1,000 crore. The report quoted Andhra Pradesh Industrial Infrastructure Corporation Managing Director B R Meena as saying "Honda wanted 100 acres of land for setting up the facility and we have shown them available land in Medak and Nalgonda districts close to Hyderabad. Honda officials said they would invest Rs 1,000 crore on the production facility in a phased manner of which Rs 500 crore will come in the first phase.’’
HMSI which has started with scooters in India while its JV with Hero motors has ben realy successfullm of late it has been concentrating on bringing more models. There have been talks of the impending exit of Honda from the JV. The company now has a two-wheeler manufacturing plant at Manesar in Haryana with an annual production capacity of 1.55 million units per annum while the second plant, with a production capacity of 6 lakh units, is coming up at Tapukara in Rajasthan.
The report said that the proposed manufacturing facility in Andhra Pradesh will be HMSI's first in South India. Honda officials have submitted their proposal for setting up the two-wheeler manufacturing facility two days ago. Initially, the unit would manufacture 2,000 two-wheelers per month and gradually increase the capacity. But they are yet to submit a detailed project report.
It has also been mentioned that two more global companies -- Italian industrial manufacturing firm Camozzi and Korean power equipment major Hyosung Corporation -- are planning to invest Rs 300 crore and Rs 450 crore, respectively in Andra Pradesh. The Camozzi Group has also come forward to set up its textile and other industrial equipment manufacturing units near Hyderabad. Hyosung has sought allocation of 25 acres of land at Mannavaram near Tirupati where the NTPC-BHEL joint venture power plant equipment manufacturing facility is coming up.