Hero MotoCorp's first overseas plant begins operations
The world’s largest two wheeler manufacturer Hero MotoCorp on Wednesday announced that it has begun operations at its new manufacturing plant in Colombia. With its first manufacturing plant outside of India, Hero MotoCorp aims to produce 80,000 units each year. The agenda is to increase production capacity to 150,000 units per year in the next phase. The plant will manufacture ten best-selling products of Hero motorcycles and scooters. "It is a historic milestone for Hero MotoCorp as this facility in Colombia is our first plant outside of India. This facility will be a key resource for us as we plan to further consolidate our market position with a range of products across segments,” said Pawan Munjal, Chairman & CEO of Hero MotoCorp Ltd. The Colombian manufacturing facility was completed in just over nine months and will work as an export hub for shipping to Andean nations in South America & Central American countries, such as Mexico and the US. The plant, spread over 17 acres at Villa Rica in Cauca state, has been built with an investment of $70 million. A total of $38 million has been used in capital expenditure, and remaining will be utilised as working capital over the next few years. Colombia’s president Juan Manuel Santos inaugurated the manufacturing facility. Hero MotoCorp currently exports its vehicles to 24 different countries, including Sri Lanka, Bangladesh, Nepal, Turkey, Colombia, Guatemala, Costa Rica, and Kenya. A part of its global expansion plan, Hero MotoCorp is building another overseas manufacturing plant in Bangladesh. With collaboration with local distributors, the Indian two-wheeler giant has operational assembly units in Kenya, Tanzania and Uganda. “As the world's largest two-wheeler manufacturer, we have the expertise and technology to provide superior quality products based on the needs and preferences of the customers. The plant will also act as a guiding light, as we work towards transforming ourselves into a global automotive giant with manufacturing facilities across the globe," Munjal added. Currently, Hero has 160 outlets across 133 cities and towns in India. The company has added 69 outlets in 2015.
September 09, 2015 | 3:48pm IST.
to success.