India Yamaha Motor has inaugurated its third manufacturing facility in the industrial town of Vallam Vadagal at the outskirts of Chennai.
The Japanese manufacturer will invest Rs 1,500 crore in phases till 2018 in this new plant. The current annual production capacity of this plant is 4.5 lakh, which would be increased to 1.8 million units by 2018.
The unique aspect of the plant is that the vendor’s facilities are located in the vicinity. Spread across 177 acres, the new facility covers an area of 109 acres for Yamaha and 68 acres for vendor partners. 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.
To begin with, Yamaha will produce the new 125cc Saluto motorcycle and scooters including new Fascino, Alpha, Ray and Ray Z at the new plant. The plant employs more than 2,000 people currently and will have 3,900 employees by 2018, out of which about 40 per cent will be women.
Yamaha is also developing a very affordable motorcycle that will be launched in the next few months. In order to price this product competitively, Yamaha decided to have its vendors within the facility to maximise cost and efficiency.