Hero MotoCorp has set aside Rs 1,100 crore as capex (Capital Expenditures that create future benefits) for 2013-2014 as a part of its development strategy. The capex includes investment of Rs 600 crore on its fourth plant and global parts centre at Neemrana and Rs 100-150 crore on an R&D center at Kukas, both located Rajasthan.
The company also plans to launch new products, conduct brand-building exercises and expand its network to stay ahead of the competition. Last week hero Motor corp’s erstwhile partner and current rival HMSI released a statement in which they said that they were hoping to become the number one manufacturer by 2015-2016.
"We are no strangers to competition. We have earmarked a capex of 1,100 crore for FY14 and put in place a multi-focal strategy to sustain and build upon our leadership through new launches, capacity addition, network expansion and brand-building initiatives" said Ravi Sud, senior vice-president and CFO, Hero MotoCorp. Hero MotoCorp is also planning to develop new products which are technologically advanced and environment friendly.