Hero to setup new production plant in South India

With an eye on expansion, Hero MotoCorp has announced its plan to setup a new plant in Southern India. The new plant will be the sixth production facility for the country’s largest two-wheeler manufacturer. Hero hasn’t divulged any details about the location of the plant or tentative production capacity of the new facility. But it is expected that new Hero plant will be based in either Andhra Pradesh or Telangana as the respective states have sent out an invitation to Hero to invest in their state. The Telangana government has offered land for the site at Zaheerabad in Medak district whereas Andhra Pradesh government has suggested to setup a plant in SriCity.

As of now, Hero Moto Corp currently has three manufacturing facilities in Gurgaon, Daruhera and Haridwar. Also Hero has invested Rs 400 crore in a production facility in Neemrana, Rajasthan and Rs 1,100 crore at its facility in Halol, Gujarat both the plants are under construction currently. Once the Neemrana plant is functional, Hero’s capacity of production will rise to 7.65 million units from the current 6.9 million units and the Gujarat plant will add another 1.8 million units once it starts production.

The plan to setup a new plant in South India is logical as Hero doesn’t have much presence in comparison to other parts of the country. Also Hero had set itself a target of producing 10 million units annually by 2017 and with the new facility in South India, the figure can increase to 12 million units.