Hardwar, Apr 8: Country's largest two-wheeler maker Hero Honda Motors today inaugurated its Rs 450 crore plant in Hardwar which will roll out 7,00,000 units for fiscal 2008-09.
The plant has an installed capacity of half a million units but will do 7,00,000 units for this fiscal. In three years, the plant will be churning out 1.5 million units. This is Hero Honda's third plant and its total capacity is expected to touch 5.4 million units in three years. The company currently has a production capacity of 3.9 million units from its two facilities at Manesar and Dharuhera in Haryana.
The company along with its ancillaries intends to pump in investment worth Rs 1,900 crore in the project, and the Rs 450 crore is likely to be scaled up soon.
The company's sales increased 15 per cent to 3,20,594 units in March compared to 2,77,915 units in the same month last year.
Company Managing Director Pawan Munjal said, ''We took a conscious decision to have the plant in Hardwar because of fiscal benefits.'' Hero Honda had completed construction of the plant in August 2007, but delayed operations to avail the full 10 years tax holiday from the Uttarakhand government.
Tax breaks are availed on the date production starts and Hero Honda felt starting the plant in the middle of the fiscal would not be a prudent step.