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Honda Unveils Plans for New Plant in
Honda Siel Cars India Ltd. (HSCI)
unveiled a detailed, long-term plan for its new
manufacturing facility in Rajasthan, to be set up in the
Alwar district, with an initial investment of over Rs
1,000 crore (US$230 million).
A Memorandum of Understanding was
signed between HSCI and the Rajasthan government for setting up
the second Honda car plant in India. The MoU was signed by
Masahiro Takedagawa, HSCI President and CEO, and Ashok Sampatram,
Principal Secretary (Industries), Rajasthan government, in the
presence of Rajasthan Chief Minister, Vasundhara Raje, the state
Industries Minister, Narpat Singh Rajvi and other senior
government and HSCI officials.
As per the long-term plan unveiled at
the ceremony, the new project would be spread across 600 acres
of land and will have an initial production capacity of 60,000
units per annum.
In addition to the car manufacturing
facility, which will be spread across 400 acres, the new project
will also have several supplier units, spread across an area of
over 150 acres. The planned capacity of the plant is likely to
go up to over 200,000 units per annum, with investments up to Rs
2,000 crore ($460 million) in the future. The plant is scheduled
to roll out the first car by the last quarter of the calendar
Honda Siel Cars India’s current
manufacturing unit at Greater Noida, Uttar Pradesh, has a
production capacity of 50,000 units which will be expanded to
100,000 units by the end of this year.
With the new Greenfield project in
Rajasthan, HSCI’s total capacity will increase to more than
150,000 units by 2010.
At the proposed plant, HSCI will deploy
state-of-the-art technologies that provide the flexibility to
produce models more quickly and efficiently. Major processes at
the plant will include a press shop, a weld shop, die-casting
shop, machine shop, paint shop and assembly operations. The new
plant will be modeled on the lines of its latest global plants
with great emphasis on environment protection and safety.
The plant will operate under the stringent
standards of ISO 9001 for quality management and ISO 14001 for
M. Takedagawa, President & CEO, Honda Siel Cars
India Ltd. said, “Signing of this MoU marks an important day in the
history of HSCI. It has been an extremely successful journey for Honda
in India and with the proposed plant we plan to foray into volume
segment – the compact car segment.”
Giving the rationale behind choosing Rajasthan
for its second unit Takedagawa said, “North India comprises 40% of our
total sales; so proximity to this market was a big consideration for us.
Moreover, with the first plant located in Uttar Pradesh, logistically
too the new plant will be convenient for us. The State Government’s
proactive support and the encouraging investment climate were some of
the other major factors in the decision.”
Honda aims to contribute significantly towards
the economic development of Rajasthan by creating large-scale employment
opportunities and the associated economic development of the adjoining
areas. It will also look at upgrading the local Industrial Training
Institutes in and around the new plant and would be prepared to absorb
qualified and skilled students from there for its unit.
While setting up the plant, HSCI will also
follow Honda’s global standards in ensuring protection of the
surrounding environment, ecological balance and conservation of natural
All Photos: Honda
(May 3, 2007)