New Delhi: Hero MotoCorp Ltd, India’s largest two-wheeler maker, on Friday said it will invest Rs1,600 crore to set up a manufacturing plant in Chittoor district of Andhra Pradesh.
The company already has five manufacturing units in India and one each in Colombia and Bangladesh.
The Delhi-based manufacturer plans to employ 2,000 people directly at the new plant and generate employment opportunities for an additional 10,000 through the creation of a manufacturing ecosystem of vendors and suppliers in the region.
Given the strategic location of the plant, the new manufacturing capacity can also act as a key hub for Hero to export its range of products to some of its key overseas markets, according to a press release issued by the company.
“In addition to building a state-of-the-art facility, we are committed to creating a world class manufacturing ecosystem in the region, with a base of globally benchmarked vendors and suppliers, which will together generate over 12,000 new jobs, thereby accelerating the socio-economic progress in the state,” said Pawan Munjal, chairman and managing director, Hero MotoCorp.
The combined installed production capacity of the company is currently 9.2 million units per annum, the highest in the country. With the additional capacity of the Andhra plant, Hero MotoCorp’s combined annual production capacity will reach 11 million units.
“I am personally very glad that Hero MotoCorp–the world’s largest two-wheeler company—is setting-up a manufacturing facility in our state—the company’s first such manufacturing unit in southern India. People of our state are going to benefit immensely from this venture,” said N. Chandrababu Naidu, chief minister, Andhra Pradesh