The world's largest two wheeler maker in terms of volumes, Hero Motocorp, is augmenting its domestic production capacity with addition of new production facilities. According to a PTI report, Hero Motocorp is planning to set up a production unit in South India to cater to the region's demand.
As of now, the company is running three manufacturing plants at Gurgaon and Daruhera in Haryana and Haridwar in Uttarakhand. Trial production at its fourth plant in Neemrana, Rajasthan has already started. The INR 400 Cr unit would go on stream shortly, taking Hero's total installed annual production capacity to 7.65 million units. The fifth plant with an investment of INR 1,100 Crore is taking shape at Halol, Gujarat with an expected annual capacity of 1.8 million units.
Mr. Pawan Munjal, MD and CEO of Hero Motocorp, confirmed that the company is looking to set up a plant in South India and is currently in the process of scouting for land. PTI reports that the South Indian plant could have a production capacity of 1.5 - 2 million units per year.
The location of the proposed plant has not been confirmed yet. Media reports indicated that Hero Motocorp held talks with the government of Karnataka last year to set up a plant in Dharward but it's too early to speculate.
A plant in South India would help Hero Motocorp save significant amount in logistics and also would enable quicker deliveries in the region. Most of the company's revamped product lineup is expected to be manufactured at the new plant.
In addition to consolidating its local operations, the two wheeler maker is also actively pursuing its international expansion with major markets like the US and Brazil in sight. Its first full-fledged manufacturing plant outside India, in Bangladesh, comes on stream next year.