Pakistan’s Honda bike assembler approves $20mn investment

Atlas Honda Limited, a joint venture of Atlas Group and Honda Motor Company, announced on Monday that its board had approved a capital expenditure of Rs5.3 billion, i.e. approximately $20 million, for the next financial year.

The company announced in a notice to the Pakistan Stock Exchange (PSX) today.

Announcing the plan for the expansion of its motorcycle operations in Pakistan, the company said that this investment will be made to enhance capacity, automation and productivity.

“As a result, the company’s rated annual capacity will increase to two million units,” the bourse was informed.

Atlas Honda Limited was incorporated as a public limited company on October 16, 1962, under the Companies Act, 1913, now the Companies Act, 2017.

The company is principally engaged in progressive manufacturing and marketing of motorcycles and spare parts. It is a subsidiary of Shirazi Investments (Private) Limited, which holds 52.43% of the issued, subscribed and paid-up capital of the company as at March 31, 2021.

“This is a major expansion, i.e. ~39%, and is expected to support future earnings growth (EPS),” said Rafi Securities.