Hero Electric to invest Rs 1,200 crore in greenfield facility in Rajasthan
Hero Electric, India’s largest zero-emission two-wheeler maker, will set up a greenfield manufacturing unit in Rajasthan entailing an expenditure of Rs 1,200 crore, its managing director, Naveen Munjal, told ET.
The facility, to be set up in the Salarpur industrial region, will be spread over 170 acres and have an annual capacity of 2 million units, he said, adding that it will also accommodate a vendor company that will invest an additional Rs 400 crore in the facility.
According to Munjal, the company had signed an agreement with the Rajasthan government for the facility earlier this month and it is likely to go on stream by the middle of 2023. Hero Electric aims to reach 5 million units annual capacity by 2025.
“The demand is robust; we have a substantial waiting-list and we are resolving the supply chain challenges,” said Munjal. “We want to be ready with capacity, as adoption to EVs gains momentum. The market, I believe, is going to move much faster than anyone could imagine. The awareness is growing, the cost of operation is lower.”The strategic location of the plant—being within 100 km of Delhi airport and close to automotive clusters in the National Capital Region–will ensure smooth connectivity ..
The upcoming facility will be equipped with modern equipment, robotics and innovative technologies. It will utilise sustainable and renewable resources like solar energy.
The company also has a new manufacturing line in Ludhiana which will go onstream in another six months with a capacity of 250,000 units. It will ensure adequate capacity to meet demand.
Hero Electric has already started production at Pithampur in alliance with Mahindra & Mahindra to tap the increase in demand. The company will get about 250,000 units capacity out of the central India facility of Mahindra.
To fund this expansion, Hero has begun talks with the private equity ..
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