Rs 2500 crore to be invested by Hero MotoCorp in next 2 yrs
Hero MotoCorp Ltd, India’s leading two-wheeler maker, is planning to invest around Rs 2,500 crore for the next two financial years up to 2018-19. The proposed investment includes products development, digitisation, phase-wise capacity installation and in brown and green field expansion. The company has crossed 70 million in sales and is racing towards 100 million.
Pawan Munjal, Chairman, Managing Director & CEO of Hero MotoCorp in a letter to the shareholders said that it is planning to expand its existing facility at Gujarat and portion of the capex will be on upcoming plants in Andhra Pradesh and Bangladesh. This capex also includes investments towards up-gradation and modernisation of company’s existing plant machinery.The first phase capacity of Vadodara plant will have a capacity of 1.2 million units annually. Gradually, the overall production capacity will be increased to 1.8 million units annually.
Company’s sixth manufacturing facility will come at Sricity, which is on the borders of Tamil Nadu and Andhra Pradesh.Production at its upcoming manufacturing facility in Bangladesh, with 1,50,000 units per annum capacity, is expected to commence this financial year. This will be company’s second manufacturing facility at a global location, following the two in Cali, Colombia.