Hero to fully begin operations at Chittoor with five lakh units by 2018

The world’s largest two-wheeler manufacturer Hero MotoCorp is intent on leaving no stone unturned to further strengthen its position at the top of the pile. After inaugurating its sprawling 247-acre research and development facility near Jaipur last month, the Indian manufacturer is now eyeing the initiation of operations at its Chittoor facility.

The move comes in after more than 18 months since Hero signed a Memorandum of Understanding (MoU) with the Andhra Pradesh state government for setting up a two-wheeler manufacturing facility at Madannapalem in Chittoor district. The plant would come up close to the existing Sri City Special Economic Zone.

As per the plan, Hero will commence production of around five lakh units per annum during the first phase by December 2018 with an investment of Rs 800 crore. The two-wheeler giant will add another five lakh units to its production capacity in the second phase by December 2020, and an additional eight lakh units in the third phase by December 2023. Investments to the tunes of Rs 800 crore will be carried out for both the phases, AP's Industries Secretary M Girija Shankar said.

Hero informed the government in a letter on March 31 about the upcoming plant. It said that it would be a state-of-the-art facility deploying robotics, cutting edge manufacturing technology and green building technology. The company aspires to turn it into a manufacturing hub for two-wheelers for east and south Asia.

Hero also promised an investment of another Rs 1,600 crore for development of ancillary units that could create direct and indirect employment for thousands of people. Initially, 1,500 locals will be employed, followed by 3,500 more individuals at a later stage. Over 2,000 people will be employed through supply chain partners for the Chittoor facility. 

The Indian manufacturer had recently told us how its attention is now graduating towards performance bikes. Thus one can expect the Chittoor facility to be the place of birth of various new and more powerful offerings from Hero in the future.

At the 2016 Auto Expo in Delhi, Hero MotoCorp had unveiled no lesser than four new motorcycles. The Splendor iSmart 110 was accompanied by the exciting new Xtreme 200S, XF3R Concept, and the battery charged e-Duet in Hero’s pavilions at Greater Noida.