India's largest two wheeler manufacturer, Hero Motocorp laid the foundation for its fourth motorcycle plant and a new global part centre at Neemrana in Rajasthan. The construction commenced over 43 acre land is a project of Rs. 550 crore. Earlier in the midst of 2012, Hero had announced about the foundation of fourth plant and an R&D centre. Well, it seems that the R&D centre project has been dropped and postponed.
Both plant and the global part centre are expected to start functioning by the end of 2013-14 fiscal year. It will equip over 1000 employees and will have an annual production of 7,50,000 units. This will improve the two wheeler production of Hero to a gigantic figure of 77.5 lakh units per annum by the end of 2014.
"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," said Pawan Munjal, Managing Director of Hero Motocorp Ltd, while laying the foundation stone.
"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," hopefully added Munjal.
The statement of Pawan Munjal clearly echoes the future plans on expansion of Hero products. Even after the partition with its erstwhile partner, Honda Motorcycle and Scooter India Pvt Ltd., Hero didn't graph any declination but unbelievable inclination surpassing all predictions and rumours.
At present Hero Motocorp has 3 two wheeler manufacturing plants across the country. Two at Dharuhera and Gurgaon in Haryana and one at Haridwar in Uttarakhand. These three production plants all together bring out at least 5 lakh units of machines monthly.
Even though Hero lost the source of techical assistance after the partition with Honda, the company has secured involvements by making partnership with 3 foreign moto-machine companies. The United States based motorcycle manufacturing company, Eric Buell Racing was the first to join hand with Hero after the Japanese firm's break up. The EBR assists the company in designing and developing uncompromised engines. Followed by, an Austrian based automotive firm, AVL (Anstalt für Verbrennungskraftmaschinen List) and an Italian motorcycle developing consortium, Engines and Engineering linked up with Hero Motocorp.