The Hindu Business Line : Honda Siel Power to relocate Rudrapur facility

Honda Siel Power Products (HSPP) said on Thursday that it had decided to relocate its manufacturing facilities from Rudrapur to Greater Noida, along with the entire workforce of around 200 people.

The company said it was making this shift in a bid to consolidate its operations to take advantage of the economies of scale.

“Presently we have three manufacturing locations. In Rudrapur we manufacture engine components, while our assembly lines are in Greater Noida and Pondicherry. We felt there was no sense in spreading ourselves thin and to save costs it was better to shift component making to Greater Noida. Our Pondicherry operations will continue to serve the Southern market,” said Mr R.P. Mehrotra, Senior General Manager (Corporate), HSPP.

Economic Benefits

Besides, this move also brings the company closer to most of its vendors and market. “This is the best option given the current market situation, where competition is coming from all over the world including China, Japan and Taiwan. This would help in a global cost decrease,” said Mr Mehrotra.

HSPP, which started operations in Rudrapur in 1988 and enjoyed economic benefits given by the State in the first eight years, is not in the incentives bracket anymore. In a statement, the company said that it will ensure the same emoluments and benefits with continuity in service to its employees even after relocation.

The entire relocation process will be completed in approximately seven to eight months and the company will ensure continuity of services to its customers.