Honda India Power Products Limited (HIPP) was established in September 1985. Briefly describe the evolution of the company since then.
Honda India Power Products Limited (HIPP) is a subsidiary of Honda Motor Co. Japan. Since its inception, HIPP has been the leader in the power products industry, manufacturing and marketing a diverse portfolio of power products at its state-of-the-art manufacturing facility at Greater Noida.
For the last 35 years, HIPP has been the preferred choice of customers worldwide and has powered the dreams of over five million satisfied users by ‘Empowering them to do better'. HIPP has consciously made efforts to facilitate mechanisation in agriculture and construction domains by introducing Honda's legendary 4-stroke technology-based products like portable water pumps, power tillers, brush cutters and Honda overhead valve (OHV) engines for concrete mixer, vibrator, concrete cutter, surface leveller, soil compactor and stone breaker applications for optimal work efficiency.
How has the Covid-19 pandemic affected your business and operations? How are you dealing with the same?
The ongoing COVID-19 pandemic has affected normal way of doing business. Taking cognisance of this, we at HIPP have reviewed all business operations starting from manufacturing to our sales and service network. Manufacturing operations have started with complete sanitisation of our manufacturing, head office and field sales office facilities at regular intervals. Mandatory temperature checks along with convenient placement of hand sanitizing machines has been done to minimise the spread of infection. Administrative and sales staff has been encouraged to work from home thereby maintaining adequate social distancing in daily operations. Daily business discussions have shifted to online platforms ensuring coordinated seamless flow of information. All our dealerships are maintaining social hygiene norms for safety of our valued customers.
Tell us something about your overall manufacturing capabilities and capacities in India.
HIPP is an ISO 9001 & 14001 certified manufacturing facility at Greater Noida producing a wide range of power products for domestic as well as overseas markets. HIPP employs state-of-the-art manufacturing technology in various stages of its manufacturing like in-house pressure die casting facility, conveyorized paint shop, tri-generation power unit having co-generation capabilities powering various utilities like boiler and plant air conditioning. As a responsible manufacturer, HIPP places highest priority to the safety of its associates and environment. Accordingly, HIPP has invested in cost efficient customised automation systems leading to achievement of zero effluent water discharge manufacturing plant.
HIPP has an installed production capacity of 3.5 lakh units per annum. To cater for the increasing demand, we regularly evaluate the need for capacity augmentation.
HIPP has a fairly diversified product portfolio. Which product segments are giving you better revenues?
Traditionally, portable generators and water pumps have been the major revenue contributor. However, with increasing mechanisation in agriculture and construction segments, products like power tiller, brush cutter, general purpose engine for powering stationary and backpack sprayers, concrete mixer, vibrator, soil compactor etc. have started to contribute significantly to the overall business.
In terms of market trends, do you see the above product segments continue to do better in the next six months?
Yes, agriculture has been the only sector to have grown during the COVID 19 pandemic. We expect this situation to persist as also borne out by the increasing sowing acreage during the ongoing Rabi season. Construction industry is also showing signs of revival and we anticipate positive growth in this segment as well.
How's been the business for HIPP so far in this financial year?
Fuelled by the agriculture growth, our products like water pumps, power tillers, brush cutters and general-purpose engine for stationary and backpack sprayers and compact crop harvester application have been in high demand and contributed significantly to our business.
In September this year, you launched backpack brush cutter. How has been the response for the same?
We introduced our 4-stroke backpack brush cutter range UMR435T in the Indian market in Sept 20'. The response has been encouraging and the product has been well accepted throughout the country. With this successful launch, HIPP has further consolidated its position as the industry leader offering a wide range of brush cutter models suitable for weed removal and crop harvesting.
How large is the Indian brush cutter market and what is HIPP's share?
In our estimate, the annual organised Indian brush cutter market is about 80K units and we enjoy a leading share.
What is your take on PM Modi's ‘Atmanirbhar Bharat'?
HIPP has been making technologically advanced and environment friendly products for our valued customers for the last 35 years. We have consciously made efforts to indigenise critical components vide technology transfer, skill upgradation of local supply chain, manpower thereby making us self-reliant and improve cost competitiveness. The average indigenous content is nearly 70 percent for the products manufactured at our Greater Noida plant. HIPP today exports ‘Made in India' products to over 60 countries including the developed markets of US, Europe and Japan. This is a testimony to our commitment to the vision of the Hon'ble Prime Minister of India.
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