HYDERABAD: Superbikes-maker Benelli is planning to set up a manufacturing facility near Hyderabad in Telangana, as the globally reputed player in the segment is aiming to make inroads into the Indian market in a big way.
Benelli on Monday signed a Memorandum of Understanding with the Telangana government to set up an indigenous manufacturing facility. The facility will be set up in two phases. In the first phase, a three-acre unit would be set up at Medchal near Hyderabad, with a capacity to produce 10,000 bikes per year. It is expected to be operational by October. The second unit will span across 20 acres. The company is scouting for land for this.
Benelli also entered into an agreement with Adishwar Auto Ride India (AARI), a subsidiary of Mahavir Group, to market its exclusive product range in India and also set up a CKD assembly plant for it in Hyderabad. The partnership also entitles AARI to assemble and manufacture Benelli bikes and also import its exclusive range of bikes from Italy and South-East Asia regions.
“In the first phase, superbikes will be assembled at the Hyderabad plant. In the second phase, complete manufacturing will be undertaken. The first phase of the plant will have the capacity to produce 10,000 bikes per year. We are aiming to sell more than 3,000 bikes in next 12-18 months, once the production starts at the new facility. We are also looking for land in Telangana to set up the second phase of the manufacturing facility, which will be spread over 20 acres. Benelli has sold 5,650 units across India till now.
While the two-wheeler market is growing at 10 per cent per annum, superbikes market is growing at 30-40 per cent per annum. We are confident that the indigenous manufacturing facility will help us in increasing our sales in a huge way. Currently, we have 21 per cent market share in the superbike segment in India and our aim is to surpass 30 per cent by 2021,” said Vikas Jhabakh, MD, Benelli India, explaining the company’s India plans.
The first phase of the manufacturing facility will create 100-120 jobs. The Benelli representatives did not reveal details of the investment.