Hero MotoCorp to invest Rs 160 crore in the new 35 acre Global Parts Centre (GPC) in Rajasthan

Hero MotoCorp, the world's largest two wheeler manufacturer has announced setting up of Global Parts Centre (GPC) at Neemrana, Rajasthan.

To be set up with an investment of Rs 160 crore, the Global Part Centre will be spread across 35 acres, said Pawan Munjal, MD & CEO, Hero MotoCorp at the company's Global Supply Chain PartnersConference 2012 in St. Petersburg, Russia.

Over 125 top component supplier of Hero MotoCorp from India, China, Thailand, Japan and Europe participated in the three day global conference held in Russia.

The Global Parts Centre is expected to be operational by Q3 of FY-14 and will initially employ 400 personnel. The state-of-the-art GPC will have automated storage and retrieval system, automated packaging and sorting system, on-line tracking of parts through Warehouse Management System (WMS), lean manufacturing systems and most importantly, the Green Building Concept, said the company in a statement. 

"The highly-mechanised, technologically-superior GPC will be a new industry benchmark once it becomes fully-operational," Munjal said.

The company also informed its supply chain partners that it will set up the fifth plant at Halol in the western India state of Gujarat, in addition to the fourth plant at Neemrana in Rajasthan.

The proposed Global Parts Centre comes close on the heels of HMCL recently announcing an investment of over Rs 2500 crore in setting up two new plants, expanding capacity at existing plants and in building an integrated R&D centre (at Kukas in Rajasthan). 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 10 million units in the next five years.

The proposed new state-of-the-art integrated R&D centre at Kukas will be set-up over an area of 250-acre and the centre will be the largest two-wheeler R&D set-up in the country, and will employ over 500 engineers.