The Hindu : Business : Honda Siel to invest Rs. 135 crore

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Thursday, Sep 07, 2006

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Business

Honda Siel to invest Rs. 135 crore

K. T. Jagannathan

CHENNAI: Honda Siel Cars India Ltd. (HSIL) will invest around Rs. 135 crore during 2006-07. This will mostly go for refurbishing — either partly and fully — its existing car models. During 2005-06, the company had invested close to Rs. 95 crore to expand the capacity of its plant at Noida to 50,000 units from 30,000 units at present. HSIL had, since inception, invested around Rs. 780 crore in its production facility.

The company had also drawn up a `definitive roadmap' for the next five years. This would include capacity expansion and launch of new models, among others. The company had already announced that it would take the capacity to one lakh cars. Honda Siel would invest over Rs. 1,650 crore between 2006-07 and 2010-11, company sources indicated.

The company reported an income of Rs. 2,542 crore for 2005-06, up from Rs. 2,162 crore in the preceding year. The profit after taxation stood at Rs. 153.38 crore, up from Rs. 132.67 crore.

In its annual report for 2005-06, the company had said that it would expand its dealer network from 49 to 66 in the current financial year. The company will soon have a zonal office in Chennai.

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