Hella India Automotive Limited based in Dhankot is under process to setup a second production factory in Mehsana district of Gujarat. The plant will be opened and start its operation from January 2019 and serve the basic requirement of its privileged customers, for example, Maruti Suzuki India. However, it is also close to the Suzuki Motor facility based in Gujarat.
Managing Director of Hella, Dr. Naveen Gautam, stated that the company has already purchased a 400 Acres land and will initiate the construction work in coming weeks. The mother plant of the company will be located at Dhankot & Haryana, and its Becharji plant will be operated as a satellite unit.
“The plant will have full capacity to produce all products that are in the portfolio, but it plans to start with horns and accelerator pedal sensor. With this new plant, we are proximity to our customers located in the western and southern region. The customers that belong to the south will have the distance reduced to almost half, whereas for those located in western regions it is just next door,” said Gautam.
At present stage, Maruti Suzuki gives a business of approximately Rs 70–80 Crore per annum to Hella. The Gujarat facility will serve the OEMs based in South in the second phase, on the basis of logistic cost benefits. The customer such as Ford, which is based in South of India, is presently supplied with products from the Dhankot Plant.
The Mundra Port in Gujarat will also help to drive the exports of Hella. As per the figures, almost half of the present volumes of horns are exported. While in the case of accelerator pedal sensor (APS), the company is creating an export quality packaging, which would make it a crucial export component.
The manufacturing capacity of the Phase I will be about 0.5 Million units per year for the accelerator pedal sensor, which will be increased up to 1 Million units. And with the completion of phase II, 1 Million additional capacity will be added.
The company with its optimistic future plans expects to tap the turnover of Rs 700 Crore by 2020–2021. The company also plans to invest Rs 100 Crore to advance its product, capacity expansion, and R&D.