HSCI to pump in Rs 250 cr for expansion

New Delhi, Sep 7: Premium cars maker Honda Siel Cars India (HSCI) today said it will pump in Rs 250 crore to ramp up the production capacity of its Greater Noida unit from the current 60,000 cars to 100,000 cars per annum by the end of 2007.

''HSCI will ramp up its existing capacity of 60,000 units to 100,000 units with an investment of Rs 250 crore. The funding will be done through internal accruals,'' Honda Siel President and CEO Masahiro Takedagawa told reporters at an industry seminar here.

HSCI is also scouting locations across India to set up a new plant to cater to the small car segment in the next three to four years. ''The initial capacity of the new plant will be 100,000 units, taking the total capacity of HSCI to 200,000 units annually by 2010,'' the company CEO said.

The company will investment 180-200 million dollars for the new plant, he said, adding that the first choice for the second unit of HSCI will be Greater Noida. However, it was also eyeing western India besides the National Capital Region.

HSCI exports to a couple of hundred units to Bangaldesh, Nepal and Sri Lanka and is currently not looking at increasing its exports from India.

''We will produce cars where the demnand is...Currently, we are not looking at exports from India,'' Mr Takedagawa said.

The company is aggressively looking at the small car segment in the future. However, it did not give any concrete details on the matter.

''Every year we change and give minor and full model changes in cars,'' Mr Takedagawa added. Honda Siel sells 30 kinds of different models.

UNI