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Yamaha plans third India plant


Japanese two-wheeler major Yamaha plans to set up a third plant in India as it looks to expand business here, and also make the country an independent export unit for selling in overseas markets, including Latin America and Africa.

The firm's wholly-owned subsidiary India Yamaha Motor Pvt Ltd will invest Rs 300 crore until 2012 to set up warehouses and delivery centres at its Surajpur plant, the capacity for which is being expanded to touch 10 lakh units by 2013.



"Currently a study is on for setting up a third plant. By the end of this year, we should think of a new factory," India Yamaha Motor Pvt Ltd CEO and Managing Director Hiroyuki Suzuki told PTI.

Asked about the time frame for the plant, he said: "We would like to start making the plan for it as soon as possible."

He said the need for a third plant, over and above the Surajpur and Faridabad plants, is in view of the company's ambitions to expand in the Indian market as well as also an intensified focus on exports.

"By 2013, we would like to sell 800,000 units in the domestic market and 200,000 units in export when the Surajpur plant reaches a capacity of oe mllion units annually," Suzuki said, adding, by 2015 the company is look at an annual export volume of three lakh units.

In 2011, the company is eyeing a total sales of 500,000 units, out of which 350,000 will be in domestic market and 130,000 of exports. Last year it sold a total of 480,000 units with exports accounting for 130,000 units.

At present India Yamaha's exports is done through its parent in Japan which act as the via media for selling between its different subsidiaries.

"We are trying to make India Yamaha an independent export unit rather than doing it through Yamaha Japan. We have started exporting directly to Nepal and the next would be Bangladesh and Sri Lanka," he said.

If the model becomes successful then India Yamaha will also look to export directly on its own to new markets.

"The markets in Africa and South America are suitable for our mass market bikes like the Crux and YBR. We would like to sell directly to Yamaha's subsidiaries there," Suzuki said.

Asked about the location of the new plant, he said: "It should be a place where it has an advantage for exports over and above catering to the Indian market."

Suzuki, however, did not comment on investments and the size of the proposed plant. He said the long term plan for India Yamaha is to manufacture mass market products at the third plant while the upper segment and premium bikes are rolled out from the Surajpur plant.