Honda Motorcycle to invest Rs 1,000 cr for new facility in AP
Honda Motorcycle and Scooter India (HMSI), a subsidiary of Honda Motor Company, will soon set up its third two-wheeler manufacturing facility near Hyderabad with an investment of Rs 1,000 crore, a government official said on Wednesday.autos Updated: Nov 17, 2010 17:07 IST
Honda Motorcycle and Scooter India (HMSI), a subsidiary of Honda Motor Company, will soon set up its third two-wheeler manufacturing facility near Hyderabad with an investment of Rs 1,000 crore, a government official said on Wednesday.
He also said that two more global companies, Italian industrial manufacturing firm Camozzi and Korean power equipment major Hyosung Corporation, are planning to invest Rs 300 crore and Rs 450 crore, respectively in Andra Pradesh.
"Honda wanted 100 acres of land for setting up the facility and we have shown them available land in Medak and Nalgonda districts close to Hyderabad," Andhra Pradesh Industrial Infrastructure Corporation Managing Director B R Meena said in Hydersbad on Wednesday.
"Honda officials said they would invest Rs 1,000 crore on the production facility in a phased manner of which Rs 500 crore will come in the first phase," he added.
HMSI currently has a two-wheeler manufacturing plant at Manesar in Haryana with an annual production capacity of 1.55 million units per annum while the second plant, with a production capacity of 6 lakh units, is coming up at Tapukara in Rajasthan.
The proposed manufacturing facility in Andhra Pradesh will be HMSI's first in South India.
Meena said that Honda officials have submitted their proposal for setting up the two-wheeler manufacturing facility two days ago. Initially, the unit would manufacture 2,000 two-wheelers per month and gradually increase the capacity.
"They are yet to submit a detailed project report to us," he added.
Meanwhile, the Camozzi Group has also come forward to set up its textile and other industrial equipment manufacturing units near Hyderabad.
"Camozzi has plans to invest Rs 300 crore on the facility and wants 20 acres of land," Meena said. Besides, he said, power and industrial systems major Hyosung Corporation is also headed for AP to set up a Rs 450 crore high-voltage transformers manufacturing plant.
The company sought allocation of 25 acres of land at Mannavaram near Tirupati where the NTPC-BHEL joint venture power plant equipment manufacturing facility is coming up.
"We had preliminary discussions with representatives of these major companies and are awaiting submission of detailed project reports. The proposals are under active consideration of the government," Meena said.