Chennai, April 25: DSK Motowheels would manufacture motorcycles equipped with smaller capacity engines under the brand "DSK Hyosung" 'from the stable of the South Korean-firm S and T group, over the next two to three years in India, a top company official said.
Pune-based DSK Motowheels is part of the Rs 5,000-crore diversified business conglomerate DSK Group.
DSK Motowheels currently has a Completely Knock Down (CKD) facility assembling motorcycles ranging between 250cc to 650cc engine capacities at Wai near Pune. The plant has a capacity of producing 250 motorcycles per month, DSK Motowheels Managing Director Shirish Kulkarni told reporters here.
"We are planning to invest around Rs 300-Rs 350 crore for setting up our second plant in Maharashtra. Mostly we will be finalising the 100 acre land in Maharashtra itself. It will be highly automated plant with a paint shop. Probably the construction should commence in six to eight months from now," said.
Noting that the company besides serving the domestic market, would also consider exporting the motorcycles from the facility, he said, the company would initially manufacture 125cc-150cc engine capacity motorcycles at the proposed plant.
"Initially, it will be an assembly plant. Hyosung world over has motorcycles with engine capacity ranging between 125cc to 700cc. We will start with 125 cc and 150cc engines. In three to four years (from now), it will be a fully operational plant... We will manufacture premium motorcycles also...," he said.
The company since June 2012 has sold 1,200 units and Kulkarni expects to sell about 2,000 units by end of 2013.
Stating that the company now has 25 retail outlets in the country, Kulkarni said the plan was to add another 10 outlets with a focus in tier-II locations, by December 2013.
He said though the industry grew by 25 per cent year-on- year, the company registered a 60 per cent growth last year.
DSK Hyosung currently retails motorcycles with base model 250cc GT250R priced at Rs 2.80 lakh (ex-showroom Delhi) and Rs 5.89 lakh (ex-showroom Delhi) for top model ST7 700cc Cruiser bike, he said.
