Honda Motorcycle inks formal agreement for Rs 1100 cr two-wheeler unit in Gujarat

Written by Express news service | Ahmedabad | Updated: Oct 1 2014, 01:35am hrs
Honda MotorcyclesHonda Motorcycle and Scooters India (HMSI) on Tuesday inked a formal agreement with the Gujarat government. (Reuters)
Japanese two-wheeler manufacturer, Honda Motorcycle and Scooters India (HMSI) on Tuesday inked a formal agreement with the Gujarat government to set up a Rs 1100 crore two-wheeler manufacturing unit at Vithalapur in Ahmedabad district of the state.

A State Support Agreement (SSA) was signed at Gandhinagar between the President and CEO of HMSI, Keita Muramatsu and the additional chief secretary (industries and mines), DJ Pandian. The agreement was signed in presence of Gujarat Chief minister Anandi Patel, stated an official release from the state government here.

As per this agreement, the company will set up a unit that will have a capacity to manufacture 1.2 million two-wheelers annually. This unit which is near the Japanese industrial estate will also provide employment to about 2000 people, added the release. The Indian Express had reported in January this year that the company had acquired 200 acres of land directly from the farmers near Vithalapur at about Rs 20 lakh per acre which is in close proximity to the Japanese Industrial Estate and the upcoming Maruti Suzuki car manufacturing plant.

This is the second two-wheeler manufacturer to set up base in Gujarat after Honda's rival Hero MotoCorp decided to acquire 250 acres of land to set up a similar Rs 1100 crore two-wheeler plant at Halol near Vadodara.

This unit in Ahmedabad district will be HMSI's fourth plant, after the ones in Haryana, Rajasthan and Karnataka. Chief minister Patel described the agreement as yet another milestone for a Gujarat that is fast turning into an "auto-hub".