Honda Motorcycles' vendors may invest Rs. 2k crore in Gujarat.

With Honda Motorcycle and Scooter India (HMSI) entering Gujarat, a host of suppliers are likely to follow. It is expected about 20 vendors will start operations in the state, together accounting for an investment of Rs. 1,500-2,000 crore and employing 8,000-10,000 people.

On condition of anonymity, a senior HMSI official said, 'Typically, we follow a policy of buying more from the region where we are operating. For example, in the North, we source about 80 per cent of our requirement from North-based suppliers, while in the South, about 75 per cent is sourced from suppliers operating in that region. We have a similar plan for the Gujarat factory.' He added earlier, many of the company's vendors had moved to Narsapura Industrial Area near Bangalore (when the company had started operations there), and it was expected a similar case would be seen in Gujarat.

BS