Yokohama India Private Limited, the domestic arm of the Japanese tyre major Yokohama will open its first tyre manufacturing plant at Bahadurgarh in Haryana on February 22, 2014. Haryana Chief Minister, Bhupinder Singh Huda will formally inaugurte the plant at 4.00 PM. Located at Plot No 1, Sector 4, B, HSIIDC Industrial Estate in Bhadurgarh, Jajjar the company will produce quality tyres designed for India with Japanese technology.
A host of dignitaries including Takeshi Fujino, Managing Director of Yokohama India; Yagi, Ambassador of Japan; Tarun Bajaj, Managing Director of HSIIDC; Chandershaker, DC of Jhajjar and Kagami, YRC, Corporate Office will be present on the occasion.
As per the plan, in the first phase, the firm is contemplating on starting operating the plant at an annual production capacity of 700,000 tyres from July 2014. The total investment in construction of the new plant is estimated to be 4.4 billion yen. It may be recalled that in 2008, Yokohama Rubber signed a pact with Haryana State Industrial and Infrastructure Delvelopment Corporation Ltd to acquire land of 25 acres in the Corporation’s industrial estate in Bahadurgarh. Eventually, the construction of the tyre plant got delayed due to market slowdown. Since July 2007, Yokohama India has been selling passenger car tyres for the aftermarket through its own sales network. Yokohama is making an effort to expand sales by creating an image of a high grade brand tyre through placing an emphasis on high performance and high quality that characterise Yokohama brand tyres.
In 2011, sales of new cars reach around three million in India. In 2020, the market is likely to reach in excess of seven million cars to grow into the third largest car market in the world. Along with this move, the local tyre market also is likely to grow at a steady pace. Yokohama Rubber plans to proactively take this as a business opportunity and upgrade its business model from sale of imported products to local production and consumption.
The industrial estate in Bahadurgarh is located about 40 kilometres west of Delhi, the largest commercial district in the country and some 45 minutes from Delhi International Airport. Many other benefits of the location include nearby Haryana State University of Technology, which is likely to become a supplier of excellent human resources.
Outline of the new tyre plant (first phase)
Area: 25 accres (99.922.5 square meters)
Product: Radial tyres for passenger cars
Production capacity: 700,000 tyres a year.
Operation: To begin in July 2014.
Total investment: 4.4 billion yen