HMSI Plans its 3rd Manufacturing Plant in Andhra Pradesh

According to Business Standard news India’s largest scooter manufacturing company HMSI (Honda Motor & Scooters India Ltd.) came up with a proposal to set up a plant in Andhra Pradesh involving an investment of about Rs. 1,000 Crores.

According to Andhra Pradesh Industrial Infrastructure Corporation (APIIC) the representative of company contacted them in this regard. HMSI requires 100 acres of land to build this plant which it will build in two phases. Both the phases will have an equal amount of investment  Rs. 500 crores each. According to news the first phase will have capacity of 2,000 units per month (This figure is doubtable it must be 2,000 per day unless HMSI will produce bigger capacity bikes from this plant.)

If the proposal is accepted, this is going to become third manufacturing plan of HMSI beside Manesar plant in Haryana and recently started Tapukara Industrial Area plant in Rajasthan, . The above two plants have 1.6 million and 0.6 million units capacity respectively which make HMSI installed capacity to 2.2 million units per annum. The upcoming plant will increase HMSI installed capacity remarkably.

This news is a clear indication that Hero Honda joint venture will not last long. HMSI is aggressively increasing its installed capacity to match Hero Honda’s installed capacity of 5.6 million units per year. It has planned some tremendous products at surprising price to rule Indian two wheeler market. The CBR250R is just one example. There are other products in line but will be announced in short time. One product is a new 100 cc bike which will be priced below CB Twister price, just wait for some time.

– Mahavir Kothari