Hero MotoCorp has laid the foundation stone for its new manufacturing facility in Sri Sri City, Chittoor, Andhra Pradesh. The sixth of its kind in the country, this new manufacturing facility will have an installed capacity of producing 18 lakh two-wheelers per annum.
Hero will pump Rs 1,600 crore to set up this new facility. Spread over 600 acres, the new facility is projected to start rolling out two-wheelers by December 2019. As of now, Hero has an installed capacity of 92 lakh two-wheelers a year, and the number will touch 1.1 crore once the Chittoor facility becomes functional.
Hero currently has five manufacturing facilities in the country located in Gurgaon and Dharuhera in Haryana, Neemrana in Rajasthan, Haridwar in Uttarakhand and Vadodara in Gujarat. Apart from these, it also has two facilities in Villa Rica in Colombia and Jessore in Bangladesh which cater to the global markets. Exports make up only two per cent of overall volumes right now, although the company plans to double its footprint to 40 countries over next few years. As for the local market, the company reported 32 per cent and 20 per cent growth in January and February 2018.
