Friday, June 24 2005 16:29 Hrs (IST) - World Time -

Bangalore: Two-wheeler giant Hero Honda plans to invest Rs 500 crore over three years for its proposed new plant in India as it seeks to scale up production capacity, its Chairman Brijmohan Lall said today (Jun 24, 2005).

"We are planning to invest Rs 500 crore over three years; Initially, we will invest Rs 300 crore", Lall said in response to a question at the launch of its new motorcycle 'Glamour' in Bangalore.

On the location of the proposed plant, he said no decision has been taken, but the company would finalise it "very, very soon".

The company's Executive Director (Business Operations) Atul Sobti said the new plant would come up this year.

Currently, the company has two plants in the north, which have capacity to produce around 2.4 lakh motorcycles per month, Sobti said.

Hero Honda sold 26 lakh motorcycles in 2004-05, and claims a 50 per cent market share in the segment. The company's exports clocked a 60 per cent growth in 2004-05; and it's looking at a growth of 50 per cent in exports in the current financial year to cross one lakh units, Sobti said.

The company is exporting to Sri Lanka, Bangladesh, Columbia, Nepal and Peru. For Columbia alone, the company is shipping 4,000 units per month, he added.

On whether 'monsoon problems' would affect the sales of the company, which is targeting to sell 30 lakh units in 2005-06, Sobti said, "There is no monsoon problem. We have to wait till mid-July". Economy and income at both rural and urban centres have 'enough resilience'.

"Three million should be on", Sobti said.

To a question, Lall said the company has no plans to enter the passenger car segment. "We plan to retain focus on two-wheelers", he said.

The company would come out with two products in the current order directing that cases should be registered them.

The appellants contended that the order was passed without seeking any explanation from them.

Justice Dinakaran had given the direction on a petition filed by a society set up for the protection of ancient Vaishnava Temples. The single judge had directed the State Government to instruct police to register a complaint against some important persons including the Seer pertaining to destruction of a sannadhi in an ancient temple, in which an idol of Lord Shiva was placed and put on some straw.

Besides the seer, others named in the complaint were Industrialist Venu Srinivasan, Trustee of Srinivasa Charitable Trust (SCT), Perarulala Ramanuja, representative of Thiru Jeer Mutt (TJM), Srimath Kaliyan, representative of Vanamalai Mutt and Unnikrishna Panicker.