Hero has yet again taken a step further towards global expansion by forming its wholly-owned subsidiary in Colombia and commencing the construction of its manufacturing plant there. Pawan Munjal, MD and CEO, Hero MotoCorp Ltd laid the foundation stone at the project site. Also present on the occasion were senior representatives of the Colombian government and the senior leadership team from Hero, along with other associates.
The manufacturing plant will spread over 17 acres of land at the Parque Sur Free trade zone at Villa Rica in the state of Cauca, which is expected to function by mid-2015 with an initial installed capacity of 78,000 units. This will further go up to 1,50,000 units once the second phase is completed.
With a project cost of Rs 420 crores, the company will invest Rs 228 crores in capital expenditure, while the remaining will be utilised as working capital over the next three-year period. The equity investment will be made through the Indian manufacturer’s wholly-owned subsidiary in the Netherlands –HMCL BV.