India largest two wheeler manufacturer Hero Motocorp., is now all set to announce its fourth plant in Gujarat as per the news reported by Times of India. Hero Motocorp will invest Rs. 1,200 crores in this upcoming plant which will be located near by General Motors Halol plant in Gujarat. Hero Motocorp will announce the plant officially within a month period.
The company has identified 300 acres of land near the GM car plant. It will be built in two phases and once it will become fully operational, it will produce two million units a year. Earlier, the company wanted to build plant near Sanand which is emerging as Auto hub in Gujarat. Tata Motors, Ford and Peugeot have facilities in Sanand. However, to have balanced growth in the entire state, the proposed plant is now moved to Halol. The plant will become operational by the year 2014.
Managing Director & CEO of Hero MotoCorp Pawan Munjal said, “Within this month, I should be making the announcement for the new plant. It will get to those levels (as Haridwar plant’s 2.5 million unit annual capacity), but will have modular capacities.”
Hero Motocorp is also speeding up its work for fifth plant in Dharward in Karnataka. The said plant will spread across over 500 acres of land and it will focus the south Indian two wheeler market and export. The company is also in process of expanding its capacity to 7.4 million units a year.
“Some investments are being made at existing plants, so capacity should go up to over 7.4 million units in the existing operations. We’re also working on a centre for after markets parts,” Munjal added.
It seems that Hero Motocop is very bullish for the two wheeler segment. It can definitely grow faster as it also operates in scooter segment. With capacity is expanded to 7.4 million units its worthwhile to watch how the company will perform in the financial year 12-13.