Hero Motocorp forays in Colombia

Hero Motocorp aims at reaching 50 global markets by the year 2020. Heading towards its goal, the two-wheeler manufacturer has forayed into South American country, Colombia, by commencing the construction of its fully-owned manufacturing.

Speaking on this occasion, Pawan Munjal, Managing Director and Chief Executive, Hero MotoCorp, said, “Today, we laid the foundation stone of our manufacturing plant at Villa Rica in Colombia, the first full-fledged plant by an Indian two-wheeler manufacturer in Latin America.”

“Once operational towards the middle of financial year 2015-16, the plant will have an annual capacity of 78,000 units that will be scaled up to 1,50,000 units in the next three-four years,” he further added.

Munjal also states that the company will be investing approximately Rs 420 crore into this fully-owned subsidiary in Colombia, out of which approximately Rs 230 crore will be invested for capital expenditure and the rest will be utilised as working capital over the next three years.  The company stated that the equity investment will be made through HMC’s wholly-owned subsidiary in the Netherlands - HMCL BV.

Heading on a solo journey after parting ways from its Japanese partner Honda in 2011, Hero Motocorp has augmented its global presence and sells its products in as many as 19 countries. The bike manufacturer has also established assembly units in Kenya, Tanzania and Uganda in East Africa. The company has two new plants coming up in Colombia, and a joint venture in Bangladesh.

Hero MotoCorp has also sold approximately 60 lakh two-wheelers in 2013-14 - the highest-ever by any single two-wheeler manufacturer in a financial year. By the year 2020, the company aims to cross one thousand crore units in cumulative production, and annual bike and scooter sales of 120 lakh units. It also plans to have more than 20 manufacturing and assembly plants across the globe with sales in more than 50 countries by that year.