DSK Motowheels shelves plan for Greenfield facility

DSK Motowheels has shelved its plan of building a new Greenfield facility where it was planning to manufacturer some of its bikes. Instead, the company has zeroed down on a Brownfield facility in Pune.

The company wants to increase their production capacity. Currently, DSK Motowheels has a capacity to assemble 25 bikes per shift per day from their Wai facility. However, the demand for the Benelli range of motorcycles has increased and in order to meet the demand, a bigger facility was required.

The company is looking to invest Rs 95 crore in the new facility which will have an initial capacity of 5,000 bikes annually. Close to Rs 75 crore will be invested in the building and around Rs 20 crore will go into installation of machinery. This proposed investment is far less than the Rs 400 crore that DSK Motowheels was planning to put into its green field setup.

The company is also working on getting the price down of its bikes by increasing the localisation in India. DSK Motowheels plans to localise its components by up to 80 per cent in the next 17 to 18 months. From the Hyosung line up, three motorcycles might make its way to India – two 250cc motorcycles and one 300cc cruiser.

Stay tuned to BikeWale as we get you more details on the upcoming DSK Hyosung and Benelli bikes.