At 1.00 pm, the share price of Hero MotoCorp was trading 1.84 per cent higher at Rs 2,359.95 on BSE.
Hero MotoCorp shares rose as much as 2.27 per cent intraday on Wednesday after the company informed stock exchanges that it has inaugurated its first global manufacturing facility at Villa Rica, in Colombia.
Completed in a little over nine months since construction began, the Colombia plant is Hero’s 5th manufacturing facility, in addition to four assembly plants in India. This Plant will act as a hub for selling to the Andean countries. It can also be a strategic base for shipping to North American markets such as Mexico and the US.
At 1.00 pm, the share price of Hero MotoCorp was trading 1.84 per cent higher at Rs 2,359.95 on BSE. It opened at Rs 2,328.05 and had touched a high and low of Rs 2,369.80 and Rs 2,328.05, respectively, in trade so far. Sensex was up 1.87 per cent at 25,799.52.
In a BSE filing, the company said, “Spread over 17 acres (68,000 sq meters) of land at the Parque Sur free trade zone at Villa Rica in the state of Cauca – about 500 km south-west of Bogota, the plant will have an initial production capacity of 80,000 units per annum. This capacity will be expanded to produce 150,000 units per annum, in the next phase. The plant has been built at a project cost of $70 million of which $38 million has been utilized in CAPER and rest will be used as working capital over the next few years.”
With the commencement of operations at the manufacturing plant in Colombia, the New Delhi-headquartered Hero MotoCorp has become the first Indian two-wheeler manufacturer to set-up a manufacturing plant in Latin America.
Currently Hero sells its range of two-wheelers through 160 outlets spread across 133 cities and towns in the country. Hero has rapidly augmented its network by adding 69 outlets in 2015 alone. Some of the bestselling Hero products include – the 100cc Splendor iSmart, Eco Deluxe, and Passion-Pro; the 125cc Glamour; the 150cc Thriller and the 225c Karizma ZMR. Hero is also the only two-wheeler manufacturer to offer a 4 year warranty on all its models.
The promoters holding in the company stood at 34.64 per cent while institutions and non-institutions held 51.89 per cent and 13.47 per cent, respectively.
For the quarter ended June 2016, the company posted net profit of Rs 750.34 crore, up 33.33 per cent, against Rs 562.76 crore in the corresponding quarter a year ago.