Two-wheeler maker Honda Motorcycle & Scooter India said it would invest about Rs 470 crore to set up its second plant in the country having an annual capacity of six lakh units, to meet the growing demand.
The facility, at Tapukara Industrial Area near Bhiwadi (Rajasthan), would be operational by the second half of 2011 and take the company’s total annual capacity to 22 lakh units.
“The total investment will be approximately Rs 470 crore… The new plant is scheduled to become operational in the second half of 2011 with annual production capacity of lakh units,” Honda Motorcycle & Scooter India (HMSI) said in a statement.
The company said it would acquire around 2.4 lakh sq metre land in the Tapukara Industrial Area for the plant and employ 2,000 workers.
“The decision to build the second motorcycle production plant was made to better accommodate a further increase in demand in India,” it added.
HMSI plans to augment the production capacity of Manesar plant to 16 lakh units by next year. By the end of this month, annual capacity of the facility would reach 15.5 lakh units from 12.5 lakh units.
“As a result, HMSI?s total annual production capacity will be 22 lakh units when the second plant becomes operational,” the company said.
The company would use advanced automation and other related measures at the new plant to give it an edge.