Hero Motors Company to launch new hi-end export oriented unit
Hero Motors Company will unveil its new hi-end export-oriented manufacturing plant at the Hero E Cycle Valley at Dhanansu on the outskirts of the city here on Tuesday.
The opening of the new plant marks the first phase of operationalisation of the Hero E Cycle Valley.
The plant will augment the company's annual production capacity to 10 million units even as the overall E Cycle Valley will achieve complete localisation of component production by housing a series of international component suppliers, said a company statement here. The new export-oriented plant is crucial for the company's ambitious global expansion plans and is expected to manufacture over 70 per cent of production for the global market. While 50 acres of the Valley houses the Hero E Cycles factory, another 50 acres has been marked for a dedicated suppliers' park, it said.
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Over ₹1,000 crore is being undertaken over two years in total outlay to operationalise the E Cycle Valley, it said.
While the company is spending ₹350 crore in operationalising the E Cycle Valley, the vendors are bringing in an estimated ₹400 crore, it further said.
Additionally, Hero Motors Company plans to further invest ₹300 crore over the next couple of years.
"While Hero E Cycles factory augments our production capacity of premium bicycles and E Cycles for the global market, the Suppliers' Park at Hero E Cycle Valley will localise production of premium components to enable production of hi-end bikes in India," said Pankaj M Munjal, Chairman and Managing Director, Hero Motors Company.