Special Correspondent

Launch of `Glamour FI' bike with fuel injection technology soon

Recommends Rs. 20 per share dividend To invest Rs. 320 crore in new plant in Jaipur Unveils plans to launch eight new models

NEW DELHI: Hero Honda on Tuesday announced that it planned to invest Rs. 320 crore to set up a new plant in Jaipur with an initial installed production capacity of five lakh units

"The plant will be set up within the next one year and will have an expandable production capacity of one million units,'' Hero Honda Managing Director Pawan Munjal told reporters here.

Also unfolding plans to launch eight new models in the current year to strengthen its product portfolio across segments, he said the company would launch `Glamour FI,' billed as the country's first motorcycle with fuel injection technology, next month.

The company reported a net profit of Rs. 267.19 crore in the fourth quarter ended March 31, 2006 as compared to Rs. 207.11 crore in the same period last year, registering a growth of 29 per cent. The turnover for 2005-06 stood at Rs. 8,866.71 crore against Rs. 7,558.55 crore in the previous fiscal, a growth of 17 per cent. Riding high on a 20 per cent jump in net profit for 2005-06, the company announced a lucrative dividend of Rs. 20 per share of a face value of Rs. 2.

The outflow on dividend, including withholding tax, would be Rs. 455.39 crore.

The net profit went up by 20 per cent to Rs. 971.30 crore in 2005-06 from Rs. 810.40 crore in the previous year.