Hero Motocorp has planned a capital expenditure of around Rs 2,500 crore for the next two fiscals up to FY 2018-19 , chairman, managing dircetor and CEO, Pawan Munjal said in the company's annual report for 2016-17.
Hero Motocorp has planned a capital expenditure of around Rs 2,500 crore for the next two fiscals up to FY 2018-19 , chairman, managing dircetor and CEO, Pawan Munjal said in the company’s annual report for 2016-17. The company has lined up half a dozen new products – across segments, including the premium and scooter categories – for launch in the next fiscal to drive our growth. “Clearly, we are going to have enhanced focus on these two growing segments to make rapid inroads with new products and innovative customer engagement and communication,” Munjal noted. The capex will be used for product development, digitisation, phase-wise capacity installation andexpansion of the facility at Gujarat and also the upcoming plants in Andhra Pradesh & Bangladesh. It also includes investments towards up-gradation and modernisation of existing plant machinery. “We are looking forward to commencing production at our upcoming manufacturing facility in Bangladesh in FY 2017-18, our second manufacturing facility at a global location, following the facility in Cali, Colombia,” Munjal observed. In the new fiscal (FY 2017-18), the company is eyeing aggressive market share gains to further consolidate its leadership, without compromising on the bottom line and margins. The company launched four new products in March 2016 – all new Glamour 125, the revamped new Maestro Edge, Duet, and the Pleasure 10th Anniversary edition.
Even as its builds internal capacities, one of Hero’s strategic priorities is to also engage with the external ecosystem, including start-ups in a meaningful way. “It is with this objective that we have made an investment in Ather Energy– one of the best start-ups in the two-wheeler EV space,” Munjal said.
“Even as we go for market share gains, Hero will preserve its unwavering focus on sustaining a healthy bottom line and margins through judicious utilisation of resources and rationalisation of costs,’ the chairman said.