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Yamaha Plans Third Plant In India To Push Up Exports

Japanese two-wheeler major Yamaha plans to set up a third plant in India as it looks to expandbusiness 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 will invest R300 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.

“At present, 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 CEO and managing director Hiroyuki Suzuki said.

Asked about the time frame for the plant, he said: “We would like to start making the plan for it as soon aspossible,” he said and added 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 eight lakh units in the domestic market and 2 lakh units in export when the Surajpur plant reaches a capacity of 10 lakh units annually,” Suzuki said, adding, by 2015 the company is look at an annual export volume of 3 lakh units. In 2011, the company is eyeing a total sales of 5 lakhunits, out of which 3.5 lakh units will be in domestic market and 1.3 lakh units of exports. Last year it sold a total of 4.8 lakh units with exports accounting for 1.3 lakh units.

At present India Yamaha’s exports is done through its parent in Japan. “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. 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 Indians.” Suzuki, however, did not comment on investments and the size of the plant.

Source : financialexpress.com