Unrest-hit HMSI to set up 2nd plant outside Haryana

Honda Motorcycle and Scooter India (HMSI), which is the wholly-owned subsidiary of Japanese Honda Motor Company, is looking forward to set up its second plant outside Haryana after it was it by labour unrest and production delays in the state for over three months starting July. HMSI is also considering various options to increase it's production capacity beyond 15 lakh two-wheelers, which it is likely to exhaust by the next fiscal-end. The company has undertaken a feasibility study in a way to evaluate all the options to set up a greenfield plant. It is also considering expanding its first plant in Manesar, Haryana. The plan to set up second plant outside Haryana is part of the strategy to de-risk its business out of single manufacturing location. Rico Auto, the autoparts maker that faced a month-long labour problem, is also planning to move some of its businesses out of Haryana. HMSI president and CEO Shinji Aoyama said, "We do not rule out the possibility of moving to the south or west, but ideally, we should stick to north India where we have a fully developed supplier base and logistic set-up. Industrial unrest is widespread in India and we can face similar problems anywhere in the country." Due to massive drop in production Honda had faced persistent labour trouble at its two-wheeler plant in Manesar between July and October suffering financial losses of over Rs 300 crore. As per the operating officer of Honda Asia Oceania, M Takedagawa, Honda Siel set up a second plant for Honda cars at Tapukara in Rajasthan to take advantage of the supplier base at its first plant in Greater Noida. Honda CB Twister and the clutchless bike TVS Jive have been recently launched in India.