Pune-based DSK, which assembles and markets South Korea-based motorcycle manufacturer S&T’s Hyosung heavy bikes in India, will invest Rs. 300 crore to set up a 1,00,000 capacity plant.
DSK has finalised a 100-acre plot in Lonand, Sata-ra district, 77 kilometres off Pune.
Sirish Kulkarni, director, DSK said the money will be raised through debt and internal accruals. He said the plant will be commissioned by the first quarter (April-June) of 2014.
Until then, they would be assembling bikes at the Pune facility which rolls out 8-10 units per shift.
Kulkarni mentioned that S&T’s engineers will form the core technology team of the assembling operations in India once the plant is commissioned.
Meanwhile, S&T is considering taking the partnership to the next level by becoming an equity partner in the Indian operations.
The current model is primarily a franchise contract agreement.
Justin Lee, head, overseas marketing, S&T Motors said in his recent visit to India that the company would explore the possibility of exporting bikes from India.
This involves entering into a product licensing agreement with DSK and setting up a research and development facility in India.
Kulkarni said DSK sold 128 units of Rs. 2.75 lakh Hyosung 250R and is rolling out 400 units for the festival season.
He said that once the plant is ready, the company will launch 7-8 Hyosung bikes in India.