As being reported, Hero MotoCorp, India’s largest two-wheeler manufacturer, is all set to announce plans of setting up a new facility in Gujarat. This plant will be Hero’s fourth facility and will be set up near General Motors’ plant in Halol in Gujarat. The new facility will incur an investment of Rs. 1200 crore and it is being said that Hero MotoCorp will make an announcement on the same in match itself.
Being the largest manufacturer in India even the demand for land is big. Hero has identified 300 acres of land available near GM’s Halol plant. The plant is expected to be built in two stages and once operational, the same will produce two million units per annum.
image – Hero Impulse Off-Road On-Road Bike
Pawan Munjal, Managing Director & CEO of Hero MotoCorp, said, “Within this month, I should be making the announcement for the new plant. It will get to those levels (as Haridwar plant’s 2.5 million unit annual capacity), but will have modular capacities.”
On one hand the official announcement for the fourth plant is yet to be made, while on the other it is speeding up talks with Karnataka state government for setting up its fifth plant in Dharward. The fifth plant will be built on a 500 acre plot offered by Karnataka government. The facility will be up and going by the year 2014, which is the same year when Hero will be launching its self-developed products.
Beside these two new plants, Hero is also ramping up the annual production at its Haridrwar, Gurgaon and Dharuhera plant to take the collective capacity beyond seven million units per annum. “Some investments are being made at existing plants, so capacity should go up to over 7.4 million units in the existing operations. We’re also working on a centre for after markets parts,” Mr. Munjal added.
check out more-