Yamaha India Plans Revamp

New Delhi, May 21: | Updated: May 22 2003, 05:30am hrs
Yamaha Motor India Ltd (Yamaha India) is gearing up to get noticed in the bike market, dominated by the troika of Hero Hoda, TVS Motor, and Bajaj Auto. The company has thrashed out a three-year capital expenditure plan (capex) of Rs 150-crore (2003-06) to enhance the installed capacity to 7 lakh units a year - up from 4.5 lakh units a year currently. The company has also undertaken an aggressive vendor rationalisation programme to bring the number of vendors between 175-200 in the next couple of years.

Yamaha India, which became a wholly-owned Yamaha Motor Co. subsidiary in June 2001, is also aiming at adding 100 dealerships this fiscal to its network of 420 dealers, following the induction of 30 dealers in fiscal 2002-03. The company also added a capacity of around 1 lakh units in 2002-03 through re-balancing of certain critical manufacturing areas.

Speaking to the FE, company COO Yoshihito Konishi said that the companys new vendor development programme was underway. If we can concentrate on a small vendor base we can consolidate volumes, and command better quality and cost, he said. Considering our volume objectives, we have to bring the network down by 10-15 per cent and at the same time identify new, productive vendors (for alliances).

Adds company executive director SK Taneja: HRD and material costs will be focus areas this fiscal. We reduced our vendor base from 250 in 2001-02 to 220 in fiscal 2002-03. Our plan is to have a network of 175-200 vendors in the next couple of years.

Mr Konishi, who has spent over 25 years with Iwata-city headquartered Yamaha Motor Company, Japan, including six years in Los Angeles and now a year in India, said that the company was looking at making Indian exports to markets like South America and Africa cheaper by $100 per unit sale.

We are expensive even at a price tag of $600-$650 per unit of RX 100 (RX 100 forms a bulk of 38,000 units exported in 2002-03) in the export market. We need to bring it down by around $100 and this would mean addressing (overhauling) the entire cost chain, Mr Konishi said. Mr Taneja said that the company did not intend to cut headcount this fiscal. Over last three fiscals we have brought the employee strength to 2,900 from over 4,000, he said.