Two-wheeler market leader Hero MotoCorp will invest Rs 3,200 crore in Andhra Pradesh in the next three to five years to expand its operations in the state, including setting up a global parts centre and hiking production capacity at its Tirupati facility, according to its Executive Chairman Pawan Munjal.The company is setting up its second global parts centre (GPC 2.0) at Tirupati at an investment of Rs 750 crore that will also help in enhancing its accessories and merchandise business besides augmenting supplies of parts in other global markets, Munjal said in a select media interaction.The foundation stone for its GPC at Tirupati was laid on Wednesday. This will be the company's second GPC after its first GPC at Neemrana in Rajasthan.Hero MotoCorp had committed to scaling up investment in Andhra Pradesh, where it has already invested around Rs 1,600 crore, including a manufacturing unit in Tirupati in 2018, but further plans were delayed due to the COVID-19 pandemic.The company is recommitting its investment in the state with a fresh Rs 3,200 crore planned to be invested "over the next three to five years", Munjal said."This will include the Rs 750 crore that we are investing in setting up the GPC 2.0 and also increasing the annual production capacity of the Tirupati plant," he added.The Tirupati factory currently produces ICE (internal combustion engine) and all of the company's electric vehicles."We have a large campus (and there is) a lot of scope for expansion. We currently have a capacity of about 0.6 million, (we are) taking it up to 1.2 million to 1.5 million units soon. Again, it will require substantial investment and generate substantial employment," Munjal noted.The expansion at Tirupati is expected to generate around 4,000 employment opportunities.The fresh investment aims to transform Tirupati into a world-class manufacturing and electric mobility hub, while strengthening Hero MotoCorp's global supply chain and reinforcing India's position in the automotive and EV ecosystem, the company said.On the rationale for enhancing investment in Andhra Pradesh, Munjal said the policies that the current state government under Chief Minister Chandrababu Naidu has put out for economy and for various industries "are very conducive to more and more investment, very business friendly, which obviously brings us back into Andhra Pradesh for more, more investments".Commenting on the requirement for a second GPC, Munjal said considering the total number of vehicles that the company has sold over the years "the requirement of parts only goes up with the age of the vehicle".Read more at:https://economictimes.indiatimes.com/industry/auto/two-wheelers-three-wheelers/hero-motocorp-to-invest-rs-3200-cr-in-3-5-years-in-andhra-pradesh-on-capacity-expansion-new-global-parts-centre/articleshow/132118053.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst (ICE MUMBAI)

Fonte notizia: The Economic Times