Hero Honda heats up for a new look

Hardwar , Oct 19 (UNI) Aiming at a double-digit growth, two-wheeler major, Hero Honda today said it is has kick-started the process of revamping its business including dealership network, showrooms, workshops and identity.

''We are aiming at a double-digit sales growth and are in the process of complete revamp of our business, dealership network, showrooms, workshops and our identity,'' Hero Honda Motors Ltd Chairman Brijmohan Munjal told reporters at the foundation stone laying ceremony of company's third manufacturing plant here.

The plant, being set up with an investment of Rs 400 crore at an area of 275 acres in the integrated industrial space, will be developed by State Industrial Development Corporation of Uttaranchal Ltd (SIDCUL), a multi-purpose industrial promotion investment arranging and infrastructure development corporation.

The initial production capacity of the unit, to be operational by mid-2007, will be 5,00,000 units and will generate direct employment opportunities to 7,000 people in the state in the next three years.

''We will be able to meet the Diwali requirement of next year from the plant itself,'' Mr Munjal said.

However, this capacity will be expanded to 15 lakh units by 2010 with a combined investment of Rs 1,900 crore. Of this sum, Hero Honda will put in a sum of Rs 800 crore and the rest will be contributed by its ancillaries.

The company has already announced an expansion of its existing two plants in Gurgaon and Dharuhera by an additional 9,00,000 units.

The new facility will help it acheive an annual production capacity of 4.4 million units by the middle of 2007.

From this plant the company will source its Splendor plus and Passion plus models, which are the highest selling models, besides a yet-to-be unveiled product. At a later stage, the plant will cater to flexible production for all models in its portfolio, including the recently launched 1500cc CBZ and Glamour Fi.

Like the firm's other plants, the third one will also cater to its export requirement, Mr Munjal said, denying to divulge further information.

The company is also looking at setting up three industrial parks, including one in the Hardwar complex itself.

''We will be setting up 10-12 ancillairies in the Hardwar complex, which will take care of the bulky items which need a higher level of finish,'' the Chairman said.

While land has been acquired for the second park, the location of the third planned industrial park has not yet been finalised.

The company said it will launch eight new models by the end of this fiscal, of which it has already launched two. Mr Munjal said more models may introduced by December this year.

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