Hero Honda eyes Rs 800 cr facility in Gujarat

After Tata Motors parked its Nano car plant at Sanand in Gujarat, yet another automobile giant seems to be keen to enter the state. This time it is world's single largest motorcycle maker-Hero Honda Motors Limited.

The automobile giant mulls to set up a greenfield facility in Gujarat for manufacturing bikes. "The company has shown interest to invest around Rs 800 crore for its new project in the state, where it will also come up with ancillary units," said a senior government official close to the development.

When contacted, a Hero Honda spokesperson said the company has initiated a feasibility study across all regions in the country and it is at a preliminary stage. "We have not identified or finalised any location," he added.

He refused to divulge any specific project details including the locations they are scouting for the project.

The legwork for the new venture has already begun. Last week, Hero Honda's senior officials held meeting with senior government officers in Industries Commissionerate of state and Gujarat Industrial Development Corporation (GIDC).

The company, which makes popular bikes such as Splendor, Passion, Hunk, Karizma, CBZ and Glamour is said to be busy identifying ideal place for its upcoming plant and it has already visited Jhagadia industrial estate located in central Gujarat.

The company is yet to zero in on any location as it is also looking at other GIDC sites in the state as well.

"Hero Honda officials seemed happy with the location shown to them at Jhagadia," said government sources privy to the development.

If everything falls in place, it will be Hero Honda's fourth manufacturing facility in India. The company at present has three manufacturing plants one each at Dharuhera and Gurgaon in Haryana and Haridwar. The latest plant is its most sophisticated plant.

In fact, Hero Honda is scouting for suitable site for its plant in other states of the country as well. A delegation from the company has also survey few locations in Karnataka.

Following a road show in Delhi by Karnataka government to attract major investments in auto sector, Hero Honda officials paid a visit to the state to asses the possibility of setting up its plant. As per industry sources, the company enjoys 59 per cent market share.