"Steelbird Announces Establishment of Helmet Manufacturing Plant in Hosur"

New Delhi-based helmet manufacturer, Steelbird Hi-Tech India, is set to bolster its nationwide production capacity by establishing a cutting-edge manufacturing plant in Tamil Nadu, backed by a substantial investment of ₹250 crore. This strategic move is designed to meet the increasing demand for helmets in the southern market.

Rajeev Kapur, the Managing Director of Steelbird Helmets, revealed that the company is actively seeking suitable land near Hosur for the construction of its ninth manufacturing facility in India and its very first in the southern region.

What initially began as an auto accessory business in 1964, Steelbird diversified into helmet production and later expanded its operations to encompass rubber components, electronics, engineering products, and even toy manufacturing, including baby walkers, baby carriers, and helmets. However, the helmet sector presently contributes over 80 percent of the group's overall revenue.

Presently, Steelbird operates four manufacturing plants in both Himachal Pradesh and Uttar Pradesh. Kapur highlighted that the Hosur facility, once scaled to full capacity, is projected to yield a staggering 20,000 helmets daily. The company anticipates a total capital expenditure of ₹250 crore for the Hosur plant, with an initial investment of ₹100 crore in the first phase.

Steelbird's products are in high demand in the southern market, where it supplies helmets to major Original Equipment Manufacturers (OEMs) such as Ola, Yamaha, Royal Enfield, and TVS. Kapur emphasized that helmets are voluminous products, necessitating extensive space for production and storage, as well as incurring substantial freight costs. With the new plant, delivery times to southern OEMs will be significantly reduced from 7-10 days to just 24 hours.

In a recent announcement, the company unveiled plans to invest ₹105 crore in enhancing production capacity at its existing plants, aiming to produce one crore helmets in the current fiscal year.

Kapur, assessing the organized helmet industry at ₹2,000 crore, expects the industry to grow at a compound annual growth rate (CAGR) of 13.2 percent. This growth is attributed to the rising popularity and sales of two-wheelers, coupled with various state governments' enforcement of helmet mandates.

HBL