Hero plans Rs 2,575cr investment
Automaker to set up two new manufacturing plants in Gujarat and Rajasthan
HERO MOTOCORP Ltd (HMCL), the world’s largest two-wheeler manufacturer, on Monday announced its aggressive growth plans for future by making an investment of Rs 2,500 core.
HMCL has also announced a substantial investment of Rs 500 crore in further expanding capacity at its existing facilities at Dharuhera, Gurgaon and Haridwar and allied expenditures.
The Managing Director and Chief Executive Officer of the company, Pawan Munjal said that they proposed to invest Rs 2,500 crore in setting up new plants, expanding capacity at the existing plants. He said that two new plants will be set up in Rajasthan and Gujurat for which discussion with the representatives of the respective state government is at the advance stage. He said that an integrated state-of-the-art technology/R&D centre spread over 250 acre at Kukas, Jaipur in Rajasthan, will be also be set up.
With this, HMCL’s fourth plant will come up at Neemrana in Rajasthan and fifth plant in Gujarat.
HMCL will be making an initial investment of Rs 400 crore to set up its fourth plant at Neemrana in Rajasthan. Construction of the plant will commence soon, so as to get it operational by Q1 FY14. The plant, which will provide direct employment to over 1,000 people, will have an installed capacity of 7.5 lakh units per annum.
• The company will invest Rs 400 crore for the Neemrana plant, which will have an installed capacity of 7.5 lakh units per annum
The fifth plant will be set up in Gujarat with an investment of Rs 1,100 crore
At present, the company produces 70 lakh units annually from its three manufacturing plants at Dharuhera and Gurgaon in Haryana, and Haridwar in Uttarakhand
HMCL has also signed a State Support Agreement (SSA) with the Gujarat government to set up a plant in the state. It expects to make the plant operational by Q2 FY14, and has earmarked a sum of Rs 1,100 crore to be invested in this plant. The total installed capacity of the fifth plant will be 12 lakh per annum, going up to 18 lakh in the next phase. The plant will provide direct employment to over 2,000 people.
With this expansion, total installed capacity of the company would be touching more than nine million units in two years’ time — which is in line with the stated objective of reaching 1 crore units in the next five years.
HMCL’s new state-of-the-art integrated R&D centre at Kukas will be set-up with an initial investment of Rs 400 crore.
Built over an area of 250-acre, the centre will be the largest two-wheeler R&D set-up in the country, and will employ over 500 engineers.