Hero Motocorp to invest Rs. 1,100 Cr in FY2014 on various activites

by Paul Joseph on March 22, 2013 · 0 comments

Hero Motocorp’s former technology partner Honda has made its intentions of racing towards the top spot clear. In order to keep Honda at bay and to remain as the world’s largest two wheeler maker (in terms of volume), Hero Motorcorp has earmarked a capital expenditure of Rs. 1,100 Cr on various activities. The investment comes when the competition in the two wheeler scene is heating up amidst a slowdown. Speaking to Economic Times, Mr. Ravi Sud, Senior Vice President and Chief Financial Officer of Hero Motorcorp stated that, “We are no strangers to competition. We have earmarked a capex of 1,100 crore for FY14 and put in place a multi-focal strategy to sustain and build upon our leadership through new launches, capacity addition, network expansion and brand-building initiatives.” About Rs. 600 Cr would go into Hero’s upcoming fourth manufacturing unit and global parts centre in Neemrana and around Rs. 100-150 Cr would go into an integrated R&D centre Kukas. Both the places are located in Rajasthan. The fourth plant would increase the total installed capacity from 7.5 to 7.65 million units per annum. The rest of the expenditure would be in the areas of IT instruments, existing plants and a proposed fifth plant in Gujarat. The FY2014 could witness launches of new and home grown products which are crucial to keep the lineup fresh. [Source: Economictimes.Indiatimes.com ]

[via Indian Motos Blog]

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