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
Ludhiana: 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% 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.
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.
This story has been published from a wire agency feed without modifications to the text.
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