CHENNAI: Two-wheeler maker Hero Motocorp signalled its first manufacturing foray into South by setting up a ₹ 1,600-crore unit at Sri City near here.
The unit will come up in phases.
The first phase will go operational before December 2019, said Pawan Munjal, Chairman, Managing Director & CEO, Hero Motocorp.
Andhra Pradesh Chief Minister N Chandrababu Naidu laid the foundation stone for the company's eighth manufacturing facility, and called it an "historical day" for Andhra Pradesh as Hero Motocorp was making its maiden foray into South to produce 1.8 million vehicles per annum.
"When fully operational, this facility will take up the total combined installed capacity to 11 million units of motorcycles and scooters per annum, which is in line with our vision of surpassing the landmark 10 million unit volumes by 2020," said Mr. Munjal.
The new unit with the help of vendors and suppliers would generate over 12,000 jobs.
Asserting that domestic market was going to be the main focus for Hero Motocorp, Mr. Munjal said that the company was looking at making the new facility an export hub to serve overseas markets.