Hero MotoCorp to invest Rs 600 crore for new parts centre in Andhra Pradesh

The capacity addition will be done in the financial year 2025-26.

Autocar Pro News Desk By Autocar Pro News Desk calendar 09 Feb 2024 Views icon7787 Views Share - Share to Facebook Share to Twitter Share to LinkedIn Share to Whatsapp
Hero MotoCorp to invest Rs 600 crore for new parts centre in Andhra Pradesh

In a bid to expand its parts, accessories and merchandise business, Hero MotoCorp will invest up to Rs 600 crore over two years to set up a Global Parts Centre in Tirupati, Andhra Pradesh. The company’s focus on the Parts Accessories and Merchandise (PAM) business has led to the business crossing annualised revenue of Rs 5,000 crore. To support growth in this business, the company has planned for an expansion of its capacity with an outlay of Rs 600 crore. The new parts centre will have a storage capacity of up to 36,700 SKUs.

Currently, India’s largest two-wheeler maker has one Global Parts Center located in Neemrana, Rajasthan, with a storage capacity of up to 26,000 SKUs. The capacity of the Neemrana facility is fully utilised, the company said.

The additional capacity addition will be done in the financial year 2025-26, and the investment will be financed through internal accruals.

India's largest two-wheeler maker posted standalone net profit growth of 51% on year to Rs 1,073.38 crore, aided by a healthy operating performance during the quarter. Revenue from operations rose 21% to Rs 9,723.73 crore as volume grew on a low base in the year-ago quarter.

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