The country's largest two-wheeler maker Hero Honda on Wednesday said it will announce the location and investment details for its proposed fourth plant within the next few weeks.
"For 2012-13, we will certainly need a fourth plant. In the next few weeks or months, we will be talking about the fourth plant," Hero Honda Motors senior vice president (marketing and sales) Anil Dua told PTI.
He, however, did not share any other details such as the likely production capacity and possible investment on setting up the facility.
"We will announce everything when the final decision is taken... We are in the final stages of the process," Dua said.
In April, the company had announced a capex of up to Rs 800 crore for this fiscal, the majority of which will be for setting up the fourth plant.
Industry sources said the company has shortlisted a location for the plant in two states, Gujarat and Karnataka.
"The company was evaluating options in about 10 different states at the beginning. From all the possibilities, the firm has zeroed in on these two states," a source said.
Hero Honda had earlier planned to announce the details of the proposed plant by last year, but it got deferred due to its eventual break-up with Japanese promoter Honda.
When asked about sales target, Dua said: "Our aim is to cross 6 million units this fiscal. We already have a capacity to produce 6.15 million units, which can further be expanded."
Hero Honda sold a total of 54,02,444 motorcycles and scooters in FY'11, as against 46,00,130 units in the previous fiscal, up 17.44%.
The company at present has three manufacturing plants at Dharuhera and Gurgaon, in Haryana, and Haridwar, in Uttarakhand.
In 2010-11, the net profit of the company declined 13.62% to Rs 1,927.90 crore from Rs 2,231.83 crore in FY'10.
The total income from operations during the last fiscal, however, increased by 22.32% to Rs 19,401.15 crore from Rs 15,860.51 crore in 2009-10.
Shares of the company were being quoted 0.90% higher at Rs 1,863 apiece during afternoon trade on the Bombay Stock Exchange.