Hero MotoCorp, the Indian two-wheeler giant, on Wednesday began operations at a new facility in Colombia, the company's first plant outside India, which has been built at an investment of $70 million.
Hero MotoCorp, already the world's largest two-wheeler manufacturer, said the new facility would also act as an export hub for the region, while ten top models of Hero motorcycles and scooters would be made at this plant. The unit, spread over 17 acres at Villa Rica in the state of Cauca, will have an initial production capacity of 80,000 units per annum. This will be expanded to 1,50,000 units per annum in the next phase.
The plant, which was inaugurated by Colombian President Juan Manuel Santos in presence of the government officials of this country and Hero officials, will provide employment to 2,200 people. It will initially manufacture 10 products from the HMCL portfolio, including the new scooter 'Dash', which was also unveiled as part of its global launch.
"As the world's largest two-wheeler manufacturer, we have the expertise and technology to provide superior quality products based on the needs and preferences of the customers. Poised to be our export hub for the region, the plant here in Colombia will generate employment opportunities for local citizens, and also help in contributing to the overall development of the economy," said Pawan Munjal, Chairman, Managing Director and Chief Executive Officer, Hero MotoCorp.
The plant, which has been completed within a year of groundbreaking, is Hero's fifth manufacturing facility, in addition to four assembly plants in India. "This facility will be a key resource for us as we plan to further consolidate our market position with a range of products across segments. The plant will also act as a guiding light, as we work towards transforming ourselves into a global automotive giant with manufacturing facilities across the globe," Munjal said.
This new facility will act as an export hub for Central and South American markets. The plant has been built at a project cost of $70 million of which $38 million has been utilised in capital expenditure and rest will be used as working capital over the next few years. With the commencement of operations at the manufacturing plant in Colombia, the New Delhi-headquartered Hero MotoCorp has become the first Indian two-wheeler manufacturer to set-up a manufacturing plant in Latin America.
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