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Our Bureau

Mr Brijmohan Lall Munjal, Chairman

Bangalore , June 24

HERO Honda plans to invest Rs 500 crore to set up its third manufacturing plant, in the next five years, to scale up its production capacity from the current three million a year.

The company is yet to decide on the location of the new plant, which is expected to be set up by next year.

Announcing this at a press conference here on Friday, Mr Brijmohan Lall Munjal, Chairman, Hero Honda Motors Ltd, said initially the company would be investing Rs 300 crore for the plant. Evading a question on the location of the new plant, he said, "We are serious about the new facility. A suitable location would be decided weighing the advantages of manufacturing, supply chain and market potential."

Southern India accounts for 25 per cent of Hero Honda's sales and its vehicles currently are sourced from its two plants at Gurgaon and Daruhera in Haryana.

Speaking at the launch of the new model, Hero Honda Glamour, here on Friday, Mr Munjal ruled out plans to set up a manufacturing plant overseas. He said with a robust growth in the domestic market , there was no need to look outside the country. Hero Honda has, however, stepped up its efforts in the exports market. The company's export increased by 50 per cent last year, he said but did not give the figures.

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