Hyundai Motor India Ltd. (HMIL) is likely to embark on a full-fledged expansion drive as the company has approved Rs 32,000 crore of investment in its India operations between 2023 and 2032. The company is preparing itself for listing on Indian bourses on October 22 this year.
One of the major targets that the Indian subsidiary of the South Korean automotive giant has is to increase production capacity, develop new products and platforms, and roll out numerous new models other than sharpening its market position in the BEV market.
According to the Red Herring Prospectus (RHP), the company has reportedly signed a memorandum of understanding with the Tamil Nadu government on its Chennai manufacturing plant, while it has received offer letters from the Maharashtra government for its upcoming Talegaon facility. The deals would have investments of around Rs 32,000 crore in total.
Scaling up
Managing Director and CEO of Hyundai Motor India, Unsoo Kim, said Rs 26,000 crore will be invested in the Chennai facility, while Rs 6,000 crore will be invested in the Pune plant. This would add to a total capacity of 1.1 million units for the firm by 2028 when it would finally meet all domestic and export demand.
The RHP observed that during history and in future capital expenditures, Hyundai was focused on the acquisition of plant, property, equipment, and intangible assets to support new models for passenger vehicles. It said that for the three months ended 30 June 2024 and 2023, and for the three years ended 2024, 2023, and 2022, money was put into these areas of this proportion: Rs 5,590.72 million, Rs 5,355.84 million, Rs 32,462.08 million, Rs 22,609.82 million, and Rs 12,649.79 million, respectively.
Production growth objectives
Hyundai India has committed to producing 775,000 units in 2024. It increased its production to 765,000 units in 2023. The second plant in Pune is likely to come into existence towards the end of 2025 and will have 170,000 units capacity at first. The next stage will add another 80,000 units capacity so it will finally reach a total capacity of 250,000 units for the unit.
Apart from its SUV focus, Hyundai has revealed a complete electric vehicle strategy for the firm; four battery models are promised to be introduced in the medium term. Mass-market, premium, Inster EV-one to sit alongside the Punch EV, and an electric Creta SUV will all join the fray.
Hyundai India put down its revenues at Rs 71,302 crore and profit at Rs 6,060 crore for the financial year ended March 2024. For the financial year ended March 2023, it had clocked an income of Rs 61,436 crore and a profit of Rs 4,709 crore.
IPO details
Hyundai India today announced plans for the country’s biggest IPO at Rs 27,870 crore; it has set up a price band between Rs 1,865 and Rs 1,960 per share. The IPO will open for public subscription from 15 October to 17 October, with bids from anchor investors opening for placing on 14 October.
In the form of an IPO, the automaker seeks to be underlined as a commitment to India. Tarun Garg, Chief Operating Officer of HMIL, said that the IPO would allow the company to follow global standards in excellence, operations, and governance-the most important benefits of the process. “The brand Hyundai has been well received in India, and this is probably the right time to pursue the IPO,” he said.
