Two-wheeler manufacturer Hero MotoCorp (HMCL) on Monday said it has commenced construction of its fourth manufacturing plant and a new Global Parts Centre (GPC) at Neemrana in Rajasthan.
The company will invest Rs 550 crore in setting up this plant and the GPC and both the facilities are expected to be operational towards the end of financial year 2013-14, it said.
“The commencement of work on the new plant is indicative of our intention and strategy for the future. We foresee a revival in market sentiment sooner than later, and when it happens, we will be ready to meet the upsurge in demand,” Pawan Munjal, Managing Director and Chief Executive Officer, HMCL, said.
The Neemrana plant, spread over 47 acres, will provide direct employment to over 1000 people, and have an installed capacity of 7.50 lakh units per annum.
“At the same time, we will be setting up a modern GPC spread over 35 acres at Neemrana,” he said.
The GPC is expected to be operational in the third quarter of the next financial year (2013-14) and will initially employ 400 people.
The GPC will have an automated storage and retrieval system, automated packaging and sorting systems, on-line tracking of parts using a warehouse management system, lean manufacturing systems and, importantly, the green building concept, Munjal added.