India's largest two wheeler maker Hero MotoCorp is on a serious expansion streak. After announcing three completely new models for early next year and investments of over Rs 1,600 crore for its manufacturing facility in South India, the brand plans to set up yet another manufacturing plant in Andhra Pradesh.
According to the report, Hero MotorCorp might invest as much as Rs 2,200 crore to set up this all-new facility in Andhra Pradesh. Furthermore, the company has reportedly been allotted 600 acres of land in Chittoor district for the upcoming plant.
"The top leadership of HeroMotoCorp led by Pawan Munjal met Andhra Pradesh chief minister in Delhi last week and entered into a preliminary agreement to set up the project in the southern part of the state, which may be entitled for central incentives as a part of the erstwhile AP state bifurcation Act," the Andhra government official said.
The proposed Andhra Pradesh facility will be Hero's sixth manufacturing plant in India. Churning out 1.8 million units, it will boost the company's overall annual capacity to 12 million units. During the oncoming festive season, Hero is eying at sales of up to 6 lakh units. The existing facilities, then, will be put to maximum use to meet the spike in demand during the season.
Source: EconomicTimes
