Hero Motocorp planning 6th plant in India

Aditya · 19th June 2014, 10:52

Hero Motocorp, India's largest two-wheeler manufacturer, is planning to expand its production capacity by setting up a sixth plant in the country.

The company has said that it is looking for land in south India for the new plant, which will cater to the needs of the local market. However, no information regarding the timeline for the completion of the project has been shared.

The new plant will have an annual capacity of 1.5-2 million units, raising the company's total annual production capacity to nearly 12 million units.

Hero MotoCorp's other plants are located at Gurgaon and Duhera in the state of Haryana and Haridwar in Uttarakhand. These three plants have a total annual production capacity of 6.9 lakh units. Additionally, the company has set up a fourth plant at Neemrana in Rajasthan with an investment of about Rs. 400 crore. This plant is conducting trial runs at present and production is expected to begin shortly. When it, is commissioned, the company's total installed capacity will cross 7.65 million units.

The company has invested a further Rs. 1,100 crore to set up another facility in Halol in the state of Gujarat. This facility, which is expected to be commissioned in 2015-16, is likely to have an annual capacity of 1.8 million units.

Hero MotoCorp is also planning to expand its operations in reach in global markets. By 2016, the company has intentions of entering the US and Brazil. It is in the process of setting up a plant in Columbia to service Latin American markets. By 2020, the company intends to enter 50 markets and plans to set up 20 manufacturing units across the globe.

19th June 2014, 11:48

Probably a bad move. In my opinion.

If they are targeting Brazil and Americas, Then Brazil is the right place to start a new plant. They are already working to have a plant in Brazil as It is a bit cheaper than making and exporting from india. And now they are planning another plant in india. Why?

Their volumes aren't growing as per expectations. The case is same with other indian manufacturers like Bajaj and TVS. Courtesy: Honda two wheeler's rapid expansion and sales.

Already they have enough capacity to produce more units per month. They will have to utilize this prior going for a new factory. Also, they can always work more hours in the same plant like Honda worked in three shifts to meet market demand with Amaze.

Work on New products. And Launch them. This is what they need to do now.

dustom_99 · 19th June 2014, 13:05

Quote:

Originally Posted by gemi_kk

Probably a bad move. In my opinion.

If they are targeting Brazil and Americas, Then Brazil is the right place to start a new plant. They are already working to have a plant in Brazil as It is a bit cheaper than making and exporting from india. And now they are planning another plant in india. Why?

Their volumes aren't growing as per expectations. The case is same with other indian manufacturers like Bajaj and TVS. Courtesy: Honda two wheeler's rapid expansion and sales.

Already they have enough capacity to produce more units per month. They will have to utilize this prior going for a new factory. Also, they can always work more hours in the same plant like Honda worked in three shifts to meet market demand with Amaze.

Work on New products. And Launch them. This is what they need to do now.

two out of there total plants are in places of TAX holidays (SEZ)!
Haridwar and Neemrana , Gujrat facility I am Not sure about.

with Haridwar Tax holiday ( Excise + other state taxes) likely to get over soon - unless mr.Munjal + other Industries in Haridwar can get it extended by State govt , Its good to shift production to newly announced SEZ / tax rebate .

Shifting manufacturing facility is actually cheaper than paying Govt taxes for High production plants like Motorcycles / daily consumables

It might even be just an indication to Uttarakhand and Haryana Govt to consider tax holiday extention .

It has always been about Good business!

abhishek46 · 19th June 2014, 15:57

Quote:

Originally Posted by gemi_kk

Probably a bad move. In my opinion.

If they are targeting Brazil and Americas, Then Brazil is the right place to start a new plant. They are already working to have a plant in Brazil as It is a bit cheaper than making and exporting from india. And now they are planning another plant in india. Why?

Their volumes aren't growing as per expectations. The case is same with other indian manufacturers like Bajaj and TVS. Courtesy: Honda two wheeler's rapid expansion and sales.

Already they have enough capacity to produce more units per month. They will have to utilize this prior going for a new factory. Also, they can always work more hours in the same plant like Honda worked in three shifts to meet market demand with Amaze.

Work on New products. And Launch them. This is what they need to do now.

Second your opinion here.
Their volumes are not growing. Honda is eating away it's lead - month after month.
Look at how many needless variant they have of the splendor and passion. All are mostly the same, with same basic engine.

They should now focus on getting their product lineup robust instead. (instead of graphics jobs and tweaking here and there).

19th June 2014, 10:52	#1
Aditya Team-BHP Support Join Date: Feb 2004 Location: Mumbai Posts: 17,828 Thanked: 77,002 Times View My Garage	Hero Motocorp planning 6th plant in India Hero Motocorp, India's largest two-wheeler manufacturer, is planning to expand its production capacity by setting up a sixth plant in the country. The company has said that it is looking for land in south India for the new plant, which will cater to the needs of the local market. However, no information regarding the timeline for the completion of the project has been shared. The new plant will have an annual capacity of 1.5-2 million units, raising the company's total annual production capacity to nearly 12 million units. Hero MotoCorp's other plants are located at Gurgaon and Duhera in the state of Haryana and Haridwar in Uttarakhand. These three plants have a total annual production capacity of 6.9 lakh units. Additionally, the company has set up a fourth plant at Neemrana in Rajasthan with an investment of about Rs. 400 crore. This plant is conducting trial runs at present and production is expected to begin shortly. When it, is commissioned, the company's total installed capacity will cross 7.65 million units. The company has invested a further Rs. 1,100 crore to set up another facility in Halol in the state of Gujarat. This facility, which is expected to be commissioned in 2015-16, is likely to have an annual capacity of 1.8 million units. Hero MotoCorp is also planning to expand its operations in reach in global markets. By 2016, the company has intentions of entering the US and Brazil. It is in the process of setting up a plant in Columbia to service Latin American markets. By 2020, the company intends to enter 50 markets and plans to set up 20 manufacturing units across the globe. Last edited by Aditya : 19th June 2014 at 10:57.
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19th June 2014, 11:48	#2
gemi_kk Posts: n/a	re: Hero Motocorp planning 6th plant in India Probably a bad move. In my opinion. If they are targeting Brazil and Americas, Then Brazil is the right place to start a new plant. They are already working to have a plant in Brazil as It is a bit cheaper than making and exporting from india. And now they are planning another plant in india. Why? Their volumes aren't growing as per expectations. The case is same with other indian manufacturers like Bajaj and TVS. Courtesy: Honda two wheeler's rapid expansion and sales. Already they have enough capacity to produce more units per month. They will have to utilize this prior going for a new factory. Also, they can always work more hours in the same plant like Honda worked in three shifts to meet market demand with Amaze. Work on New products. And Launch them. This is what they need to do now.
	(1) Thanks