According to news reported by Hindu Business Line, India’s largest two wheeler manufacturing company, Hero Motocorp’s fourth plant announcement may take some time due to delay in land acquisition. This is because of the last small plot which is yet to be acquired from the private parties. Hero Motocorp’s new plant will come up on the land which is very close to General Motor’s car plant in Halol, Central Gujarat. The new plant is expected to spread across 300 acres.
Hero Motocorp New Production Plant in Gujarat, India
Earlier in March, it was reported that Hero Motocorp will announce its new plant in the month of April. However, due to above land acquisition delay the company has not made any announcement yet. One of the top officials of Gujarat confirmed that, the announcement for new plant will be made within a month as the development is in the advance stages. He also confirmed that the land issue will be cleared soon.
The new plant will come with an investment of Rs. 1,200 crore and it will have installed capacity of 2 million units. The new plant will focus more on export front upon which the company is working aggressively. Currently export account for 2% of Hero Motocorp’s total sales which the company intends to make 10% of total sales within 5 years. The company aims to export 1 million units in the next five year. The company will start exporting to Africa and Latin America from the current quarter. The company has currently installed capacity of 6.6 million units and it is expected to go up to 7 million units by July-August.