The Hindu Business Line : Yamaha on expansion drive, plans Rs 400-cr investment<br>Third plant, more new products on cards

The Managing Director and CEO of Yamaha Motor India Ltd, Mr Hiroyuki Yanagi, sitting on the Yamaha G5 motor-bike during the launch in the Capital on Thursday. - Kamal Narang

New Delhi , July 7

YAMAHA Motor India today said that it plans to set up a third plant with an investment of Rs 200 crore.

The company also plans another Rs 200-crore investment in capacity expansion and rolling out new products.

Commenting on the proposed plant, Mr H. Yanagi, CEO and Managing Director, Yamaha Motor India, said, "The new plant would enable the company to develop India into an export hub for the European market."

He added that while the location of the new plant has not been finalised, it is expected to provide an additional capacity of 5,00,000 units.

"This could require investments of up to Rs 200 crore," he said.

"We are also planning to increase capacity at our two existing plants by about 1,50,000 units to 5,00,000 units in the next two years,"

Mr Yanagi said, adding that the company would be spending about Rs 200 crore towards ramping up capacity and rolling out new products.

The expansion will be funded primarily by issue of fresh equity and also through working capital.

This would raise Yamaha's investments in India to almost Rs 1,000 crore.

With its expansion plans in place, Yamaha is looking to double its market share to 10 per cent in the next two to three years, Mr Anil Gupta, Chief Sales Manager, Yamaha India, said at the launch of the new bike `libero G5'.

The newly launched `libero G5', which comes with a 106 cc engine, will be available in the domestic market in the second week of July. The bike comes with a price tag of Rs 40,990.

The launch is part of Yamaha's strategy to roll out new variants of its existing products. The company has already launched two variants of the Fazer earlier in the year, and there are more such launches in the pipeline.

The company also said that it has firmed up a strategy for a foray into the local scooter market.

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