Hero Commences Construction of a New Plant and Global Parts Centre

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In a step towards meeting its aggressive growth plans for the future, Hero MotoCorp Ltd. (HMCL), the world’s largest two-wheeler manufacturer by volumes, has commenced construction of its fourth manufacturing plant and a new Global Parts Centre (GPC) at Neemrana in the northern Indian state of Rajasthan.

Mr. Pawan Munjal, Managing Director & Chief Executive Officer of Hero MotoCorp laid the foundation stone of these two new facilities at a function attended by several dignitaries including senior company executives, key ancillaries of the company, other associates and representatives from the state government of Rajasthan here today.

The company will invest a total of Rs 550 crore in setting up the fourth manufacturing plant and the GPC. Both the facilities are expected to be operational towards the end of the Financial Year (FY) 2013-14.

Speaking on the occasion, Mr. Munjal said “The commencement of work on the new plant is clearly indicative of our intention and strategy for the future. Thanks to overwhelming demand for our products, we have been consistently clocking in excess of five lakh unit monthly sales on an average. We foresee a revival in market sentiments sooner than later, and when it happens, we will be ready to meet the upsurge in demand.

“At the same time, we will be setting-up a state-of-the-art Global Parts Centre spread over 35 acres at Neemrana. The highly-mechanised, technologically-superior GPC will be a new industry benchmark once it becomes fully-operational,” Mr. Munjal added.

The Neemrana plant, spread over an area of 47 acres, will provide direct employment to over 1000 people, and have an installed capacity of 750,000 units per annum.

The GPC, which is expected to be operational in the third quarter of the next financial year (2013-14), will initially employ 400 personnel. The state-of-the-art GPC will have automated storage and retrieval system, automated packaging and sorting system, on-line tracking of parts through Warehouse Management System (WMS), lean manufacturing systems and most importantly, the Green Building Concept.

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