There has been a delay in the land acquisition for Hero MotoCorp’s next plant. The largest two wheeler producing company in India was on the verge of announcing their fourth plant. However, it looks like the official message from the company will take some more time.
The delay has been in the process of land acquisition. The problem arose when the company was yet to get a smaller plot of land that they have yet to acquire from the concerned private parties. It should be noted that new Hero plant will spring up in Halol, in Central Gujarat and will be in close proximity to the plant of General Motors.
The Hero Company’s plant is likely to be built on a sprawling 300 acres of land. As a matter of fact, the announcement was supposed to be made sometime in the month of April. The delay has made the company stop any official development on the issue. It is expected that these developments will take another month or so. And it is only then that the company will again bring out any word on the matter.
The Halol plant is likely to be invested with an investment of Rs. 1200 crores. The new plant will make it possible for the company to add a production of another two million units to its current production. To bring all these things into reality, the company is taking all the possible steps and is on the aggressive front.
The company is looking to export around one million units in the coming five years. When the plant will be fully functional, it will be likely that the company takes the exports up to a total of 10 per cent of the sales as against the current rate of only 2 per cent.
The lucrative markets for Hero are the Latin America and Africa. The exports to these couple of destinations will start in the ongoing quarter itself. Hero MotoCorp can current manufacture 6.6 million units. By the end of August, the figure is likely to touch 7 million units.