Hero Motocorp Gujarat plant to be an export hub
Hero Motocorp’s upcoming Gujarat plant at Holol will play a vital role in the two wheeler giant’s growing export operations. The company’s chairman Pawan Munjal, said in an annual report that the Halol plant’s proximity to ports will enable the products to reach export destinations much faster.
The company is planning to establish presence in 50 international markets by 2020 and according to Mr. Munjal, most of western demand would be taken care by the new facility. As per the state support agreement that the two wheeler maker signed with Gujarat’s government, about 215 acres of land has been allotted. Investment would be in the tune of INR 1,100 crores. Gujarat plant will be the company’s fifth manufacturing facility in the country.
Further, Hero Motocorp is constructing a production plant in Colombia to cater to the growing South American markets. There will also be a plant in Bangladesh to meet the local demand.
In the last financial year, Hero sold around 2 lakh units in global markets but with steady increase in presence, the company aims to sell 1.2 million units overseas by 2020.
It’s to be noted that Hero’s primary rival in the domestic market, Honda Motorcycle and Scooter India (HMSI) is also working on its Gujarat manufacturing plant (at Vithalapur).
Via – Livemint.com