India Yamaha Motor Pvt. Ltd.
(IYM) has inaugurated its third manufacturing facility at the industrial park
in Vallam Vadagal situated at the outskirts of Chennai, Tamil Nadu. The plant
was inaugurated during the opening ceremony of the Global Investors Meet 2015
by Chief Minister Ms. J. Jayalalithaa in the presence of Hiroaki Fujita,
Chairman, India Yamaha Motor Pvt. Ltd. and other senior dignitaries of the
Tamil Nadu government and IYM. The new factory will be the first in the Yamaha
Motor group to have a vendor park in its vicinity. Spread across 177 acres, the
new facility covers an area of 109 acres for IYM and 68 acres for vendor
To begin with, Yamaha will
produce the new 125cc Saluto motorcycle and scooters including new Fascino,
Alpha, Ray & Ray Z at the new plant, which will have an initial annual
capacity of 450,000 units. The plant employs more than 2,000 people currently
and will have 3,900 employees by 2018, out of which about 40pc will be women
The company signed a
Memorandum of Understanding with the government of Tamil Nadu in May, 2012 to
construct and operate the two-wheeler factory in the state. The new facility
will join the currently operating factories of IYM at Surajpur (Uttar Pradesh)
and Faridabad (Haryana) to meet the rising demand for two-wheelers in India.
With the new Chennai factory and the company’s plants in Surajpur and Faridabad,
IYM will have a combined two-wheelers production capacity of 2.5 million units
On this occasion,. Hiroaki
Fujita said: “We are pleased with the timely completion of Chennai factory
construction and start of operations in line with our Mid-term plan. We also
thank all the concerned Tamil Nadu government departments for their support in
completion of the project on time. We plan to invest a total of Rs. 1,500 crore
in phases till 2018 when the new plant is expected to have a capacity of 1.8
“The company has sold 7.4 lakh
units in 2014 and we are eyeing double-digit sales growth in 2015. The company
is also targeting a significant increase in the domestic market share in the
coming three years. Considering the high growth in the scooter segment at
25-30% over the last few years, the company is also looking at increasing its
presence in this segment in which it currently has more than 5% market share.
South has been a very important market for us. The region contributes around
30% to the total two-wheeler demand while it contributes approximately 50% to
total IYM sales. Chennai is also a strategic market for us due to its proximity
to the sea port.”, Fujita added.
The new Chennai Factory is the
first in the Yamaha Motor group which has a “Vendor Park” in its nearby
vicinity. The vendor park has 9 vendors who plan to invest Rs. 1,000 crore and
will employ around 3,000 people by 2018. The facility will bring together the
production operations of main external parts suppliers, thus enabling complete
synchronization of external supplier parts production as well. This system will
reduce losses in the areas of production management and distribution to
extremely low levels in the overall engineering and manufacturing process, and
make the new production base a highly-efficient and profitable plant.
This Chennai plant is an
energy-recycling factory. The plant incorporates state-of-the-art
infrastructure and advanced technologies for Zero-water discharge and recycle/
reuse of waste water and maximum use of sunlight. The building is compatible to
solar power system installation. All common utilities are located in the centre
to minimise distribution loss & centralised management.
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