Hero Honda invest Rs 350 cr for expansion plans
Hero Honda India has recently announced that the company has chalked out an Rs 350 crore capacity expansion and modernisation plan this fiscal.
This comes at a time when close competitors of the largest two-wheeler manufacturer are running at less than full capacity due to significant inventory-carrying costs amid weak demand.
Hero Honda is ramping up capacity at its Haridwar facility to take it to over a million units this fiscal. This would take the company's overall production and sales targets for 2009-10 to over four million units.
Managing director Pawan Munjal said the Rs 350 crore would be spent in capex and to upgrade bike engines to meet the new emission norms which come into effect from April next year.
Besides, expenses on putting up a gassifier plant at Gurgaon (to phase out furnace oil and diesel usage), a new paint shop at Haridwar and modernisation of the existing facilities at Dharuhera and Gurgaon will also be undertaken within the earmarked investment.
Currently, 4,000 bikes a day are being made here and the company has shifted production of two of its biggest selling models - Splendour and Passion to avail of tax benefits.
[Via: Infibeam]
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