"We have huge investment plans in various parts of the organisation. We will be setting up our fourth plant at Neemrana in Rajasthan," Hero MotoCorp Managing Director and Chief Executive Officer Pawan Munjal told reporters here.
The company will invest Rs 400 crore on the Neemrana plant that will have an installed capacity of 7.5 lakh units per annum.
It will invest another Rs 1,100 crore on a new plant in Gujarat which will have a total capacity of 12 lakh units per year. Also, another Rs 400 crore is being invested to set up a research and development centre near Jaipur.
Besides, the company said it has an ongoing investment of Rs 500 crore for capacity expansion of existing plants. It has also earmarked Rs 175 crore for various other investments.
"Once the fourth and fifth plants are commissioned, our total manufacturing capacity will be over 9 million units a year from the current about 7 million units," Munjal said.
At present, the company has three three manufacturing plants at Dharuhera and Gurgaon in Haryana, and Haridwar in Uttarakhand.
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While the Neemrana plant will go onstream by the first quarter of 2013-14, the Gujarat plant will be commissioned by the second quarter of FY14, Munjal added.
This is the second announcement in as many days of an automobile company going to Gujarat to set up its plant. On Saturday, Maruti Suzuki India had said it will invest Rs 4,000 crore, to set up a new plant in the state by 2015-16.