Hero MotoCorp has inaugurated a new manufacturing facility at Villa Rica, in Colombia. This is the manufacturer's first production plant outside India.
The new facility spreads to over 17 acres and is built at a project cost of 70 million USD of which 38 million USD has been utilised in capital expenditure. The rest of the amount will be used as working capital over the next few years. The plant's initial annual production capacity is pegged at 80,000 units, which will be further extended to 1,50,000 units a year in the next phase.
Ten products from Hero MotoCorp's portfolio, including scooters and motorcycles, will be manufactured at this plant. The yet to be unveiled Hero Dash scooter will be unveiled at the plant today as a part of its global launch.
Hero MotoCorp has expanded into new markets in Asia, Africa, South and Central America over the past year and a half. The company considers extending their business to different markets as very crucial and they aim to reach 50 global markets by 2020.
With the inauguration of this plant in Colombia, Hero MotoCorp has not only set a historic milestone for themselves, but also become the first Indian two-wheeler manufacturer to set up a global manufacturing facility in Latin America. The new plant will also act as an export hub for neighbouring markets like the Andean and Central American countries. It will provide employment to 2,200 people and also help develop ancillary industries in that region.
