Haridwar: Country’s largest two-wheeler maker Hero Honda said it will invest an additional Rs150 crore in the current fiscal to scale up capacity at the company’s new facility here inaugurated Tuesday.
The plant would have an initial installed capacity of half a million bikes per year and would be increased up to a million units by 2008.
The company has so far invested Rs450 crore in the plant. It had last year announced that along with its ancillaries, a total investment of Rs1,900 crore would be made in the project, which would have an overall production of 1.5 million units by 2010.
“This plant sets new benchmark in terms of lay-out, processes, supply-chain management, human resource management and most importantly environmental consciousness,” Hero Honda Motors Ltd Managing Director Pawan Munjal said here.
The initial production level of the new plant would be 2,000 vehicles per day, which would be ramped up to 4,000 units a day by the end of this year, he added.
In the next two years, 100 ancillary firms would be setting up their manufacturing bases here. To begin with, 40 ancillaries would have their plants in the area.
Hero Honda had completed construction of the plant last year but delayed operations to avail the full 10-year tax holiday from the Uttarakhand government.
The company currently has a production capacity of 3.9 million units from its two facilities at Manesar and Dharuhera in Haryana.
Earlier in January, the company announced to launch as many as 12 new products in the next 18 months.