Honda India Power Products on Wednesday announced its foray into the marine outboard business and aims to corner around 10 per cent market share in the 4-stroke engine segment in the first three years.
From April, the company will introduce Honda 4-stroke marine outboard motors range for boat operators targeting various government agencies engaged in maritime security, coast guard, taxi boat services for passengers and tourists, and fishermen engaged in commercial fishing in sea and inland river systems.
These motors are priced between Rs 1.8 lakh for 6 hp and Rs 23 lakh for 250 hp.
The company said the marine outboard industry in India is expected to grow up to Rs 1,400 crore in size going forward and HIPP is aiming to capture a 10 per cent market share in the 4-stroke segment in the first three years. In terms of volume, the industry is at around 10,000 units a year.
All the three segments of the marine outboard business -- tourism and leisure, maritime security and fishing -- are witnessing a major shift towards 4-stroke technologically advanced products from 2-stroke motors and HIPP is seeking to tap the opportunity.
''With the participation of ourselves, we want to accelerate that conversion from 2-stroke to 4-stroke,'' Honda India Power Products Ltd (HIPP) Chairman and Managing Director, President and CEO Takahiro Ueda told PTI.
From a quantity point of view, the biggest segment will be the fishing segment as it mainly uses small engines, he added.
With India having a coastline of over 8,000 km, the company sees big market potential in coastal regions, especially in places like Kerala, Goa and the Andamans, besides Kashmir. On the company's distribution network for the marine outboard business, Ueda said, ''We have business partners, dealers covering all the coastline, mainland and also Andaman and Nicobar (island)''.
When asked if the company will be manufacturing the marine outboard products in India, he said, ''At the initial stage we will be importing from our global manufacturing facilities...if the growth rate keeps on constantly growing, we may consider production but as of now, there's no plan to manufacture (in India)''.
Ueda said the company's announcement to enter the marine outboard business reaffirms its 36 years legacy in India of offering a diversified product range of power products, catering to the power back-up, agriculture and construction.
The company has, so far, made a cumulative investment of over Rs 2,500 crore in India, he added.
The company has a production facility in Greater Noida, where it manufactures portable generators, water pumps, engines and tillers with a total annual capacity of 3.5 lakh units.