Hero MotoCorp Builds manufacturing plant on 'Green Concept'

The state-of-the-art platinum-class manufacturing plant of Hero MotoCorp Ltd at Neemrana in the Northern Indian state of Rajasthan has gone on stream, in keeping with the company's vision to surpass 100 million units in cumulative production by year 2020. The plant will be officially inaugurated by the Chief Minister of Rajasthan Smt. Vasundhara Raje Scindia. Hero's one-of-a-kind-garden factory that will redefine manufacturing is based on the core principle of sustainable development as the company remains committed to maintain the highest ecological standards. From efficient building envelope, to the Big Foot air handlers, to water and energy optimisation - the Garden Factory demonstrates HMCL's environmental aspirations.

On this new achievement, Pawan Munjal, Vice Chairman, Chief Executive Officer & Managing Director, Hero MotoCorp Ltd. said, "It is a momentous occasion for us as we synergise environment and cutting-edge technology to unveil our fourth manufacturing unit, which is a garden of health and productivity, where we don't only manufacture products but also nurture life. We believe in giving back to the environment as much as we take from it. And that is why Hero has kept the 'green concept' in focus while building this 'Garden Factory'.

As leaders in the automotive industry, we fully realise our responsibility as an opinion leader in the fast changing industrial environment. With the knowledge that a cleaner, pollution-free environment is the only way forward, we are ushering in an era of change. Today, we are living up to that commitment by unveiling the first of our 'Green Concept' manufacturing unit which will serve as a template for our upcoming production facilities to replicate. Augmenting our capabilities, HMCL's highly-automated Global Parts Centre is our big stride in building self-sufficiency. We have lined up total investment of over Rs 5000 Cr (US$ 800 Million) across the globe, including the manufacturing plants in Colombia and Bangladesh, and the new plants coming up at Gujarat and Andhra Pradesh and the Hero Global Centre for Research & Design at Kukas in Rajasthan."

With the launch of this facility, about 120 km south-west of the national capital New Delhi, Hero MotoCorp now has four globally-benchmarked manufacturing units in India – Haridwar in the hill state of Uttarakhand, Gurgaon and Dharuhera in the northern state of Haryana, and Neemrana. The combined installed production capacity of the company has now risen-up to 7.65 million per annum – well in course to achieve the stated objective of 12 million annual capacity by Year 2020.

HMCL has injected a sum of Rs 1050 Crore (US$ 175 million) as initial investment to build this sustainable manufacturing unit balancing nature, business and mankind. Adjacent to the plant is Hero MotoCorp's state-of-the-art Global Parts Centre (GPC) which has automated storage and retrieval system, automated packaging and sorting system, on-line tracking of parts through Warehouse Management System (WMS), lean manufacturing systems and most importantly, a similar Green Building Concept.

Aiming to double its annual turnover to over Rs 3000 Crore in the next two to three years, the GPC is designed to have minimal manual intervention while significantly enhancing productivity. The new plant will manufacture HMCL's range of motorcycles and scooters.  Going forward, the company has plans to develop high-end two-wheelers from this facility. The current production capacity of the plant is 750,000 units per annum which is likely to go up with rising demand.

The unveiling of HMCL's new plant at Neemrana - just over a year after construction began - showcases the perseverance & aggression with which the company is working towards realising its long-term vision of reaching higher volumes to meet growing demand from domestic and international markets. Hero MotoCorp is also set to commence construction of its fifth & sixth manufacturing plants in Gujarat and Andhra Pradesh respectively. When operational, all these plants – including the ones in Colombia and Bangladesh – will take the total installed capacity of Hero MotoCorp to 12 million units of two-wheelers.