Honda Siel Power Products Ltd.

honda siel power products

About the Company:

Honda Siel Power Products Limited (HSPP) is India’s No. 1 Power Products company, is a subsidiary of Honda Motor Co. Japan and was incorporated in 1985.

Company is into manufacturing of three important products; one is the generators, gensets. The second business is water pump business and third business is the engine business.

Company is undisputed leader in the power products industry, manufacturing and marketing a range of Portable Generators, Water Pumps and General Purpose Engine at its state-of-art manufacturing facilities at Greater Noida.

Company occupies a leadership position in the domestic generator market and export to over 35 countries.

Company enjoys market leadership in the organized portable generators segment with a huge 80% market share.

60% of the company’s total topline comes from the generator business, 20% from the water pump business and about 13-14% from the engine business.

In the Power sector, it makes portable generators which are exported to the rest of the world .

In the Agri segment, the company primarily caters to the farm equipment needs of rural India -right from tillers to brush cutters.

North America is the major export destination for the company whose exports contribute roughly ~41% of the revenues as per FY17 figures. UAE is another important destination for the company.

Last year company introduced “Diesel Water Pump” and “New Gasoline Water Pump” for the vast and growing agriculture and horticulture markets.

With the introduction of Diesel Water Pump the Company now offers solutions across all major fuel categories for the Indian farmer.

Both categories of Water Pumps have received a very positive response in the market and your company expects to further increase its presence in these categories.

Company benefits from the rich experience of Honda Motor Co., Japan the second largest engine manufacturer in the world, because of their strong emphasis on R&D and in-house technical innovation.

Company’s products:

  • Portable Generators
  • Water Pumps
  • Engines
  • Lawn Mowers
  • Brush Cutters
  • Rotary Tiller
  • Backpack Sprayer


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Positives For the Company:

  • Excellent Management Team (with Support from Honda Japan)
  • Undisputed leader in the power products industry.
  • The tiller segment is showing a promising growth in the Indian market because tiller is more feasible than a tractor if the average farm holding is less than 5 acres & in india, average farm holding per farmer is 2.5 acres and decreasing every year.(So a huge potential for this segment)
  • Earlier company was importing stuff from Japan and selling it here(basically operating as a trading firm), Honda Siel has now slowly moved to making these products
    locally and selling them both domestically and abroad.
  • Debt Free Company.
  • Consistent Dividend Payer.
  • CMP is around Rs.1360 and Market Cap is around Rs.1380 crores ($212 million)
  • Stock may give very good return in the Long term.


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