Hero Motocorp to start Making in Andhra Pradesh
The Hero MotoCorp Ltd (HMCL) has submitted plans to the Andhra Pradesh government to begin production at its proposed Madannapalem plant in Chittoor district of the state. According to the plan, the two-wheeler giant will expand in three phases, by rolling out 5 Lakh units by December 2018, and will increase by 5 lakh units more by 2020 and another 8 lakhs by the end of 2023. The proposed investment for each of these phases is said to be to the tune of Rs. 800 crores.
Generating an employment of 1500 in the first phase, Hero plans to expand that to 3500 in the subsequent phases. The company had earlier signed a Memorandum of Understanding with the Andhra Pradesh government in September 2014 and as per that, the plant will come up close to the existing Sri City Special Economic Zone.
The upcoming plant would be state-of-the-art and deploying robotics, cutting edge manufacturing technology and green building technology and it would be made a manufacturing hub for two-wheelers for east and south Asia. Hero MotoCorp also promised an investment of another Rs 1,600 crore for development of auxiliary units that could create direct and indirect employment for 15,000 people. In addition to this, employment for 2,000 people would be created by the supply chain partners in Phase-I and would go up to 6,500 at the final stage of expansion.
The TDP Government also agreed to allocate another 200 acres of land within a radius of 25-35 km of the mother plant for the proposed ancillary units, that are expected to commence production in the first phase by December 2019 with an investment of Rs 400 crore. Another Rs 600 crore each would be invested for the next two phases by December 2021 and 2024, respectively.